Jeff Owns a Small Business Installing Home Security Systems Priced

question 354

Multiple Choice

Jeff owns a small business installing home security systems priced at $1,000 each. By himself, he can install four systems per month. If he hires an assistant, a total of ten systems can be installed. If he hires two assistants, a total of fifteen systems can be installed. Assuming that the price stays the same, what is the marginal revenue product of the first assistant and the marginal revenue product of the second assistant?

• A) $6,000; $5,000
• B) $6,000; $11,000
• C) $10,000; $11,000
• D) $10,000; $15,000

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