Suppose a Firm Uses Workers and Office Space to Produce

question 95

Multiple Choice

Suppose a firm uses workers and office space to produce output. The firm is locked into a year-long lease on its office space, but it can easily vary the number of employee-hours it uses each day. The accompanying table describes the relationship between the number of employee-hours the firm uses each day and the firm's daily output. Each unit of output sells for $2, the hourly wage rate is $14, and the rent on the office space is $50 per day.  
When the firm uses 9 employee-hours per day, its total revenue each day is:

• A)$240.
• B)$160.
• C)$120.
• D)$18.

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Definitions:

Histoplasmosis

A fungal infection caused by an organism found in bird and bat droppings.

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An infectious disease caused by the bacterium Mycobacterium tuberculosis, primarily affecting the lungs but can spread to other organs, characterized by coughing, weight loss, and fever.

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A cough that results in the expulsion of mucus or phlegm from the respiratory tract.

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A bluish discoloration of the skin resulting from poor circulation or inadequate oxygenation of the blood.