The Following Table Shows the Output of Chairs Produced by a Firm

question 24

Multiple Choice

The following table shows the output of chairs produced by a firm at different units of capital rented. The price per chair is $10.

-Refer to the table above.If the rental price of machines is $40 per day,how many machines should the firm rent to maximize profits?

• A) 2
• B) 4
• C) 6
• D) 7

---

Definitions:

Fixed Expenses

Expenses that do not change based on the quantity produced, such as furniture or machinery.

Variable Expenses

Costs that change in amount from period to period, fluctuating with usage levels, economic conditions, or personal choice.

Piecewise Function

Also called a split function; it gives a set of rules for each domain of the function; c(x) is computed differently depending on the value of x.

Droughts

Extended periods of abnormally low rainfall, leading to a shortage of water that affects crop production, water supply, and the environment.