Table 103 Hotspur Incorporated, a Manufacturer of Microwave Ovens, Is a Price

question 239

Multiple Choice

Table 10.3
$$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Number of } \\\text { Workers }\end{array} & \begin{array} { c } \text { Output of Microwave } \\\text { Ovens per Week }\end{array} \\\hline 1 & 30 \\\hline 2 & 55 \\\hline 3 & 75 \\\hline 4 & 90 \\\hline 5 & 100 \\\hline 6 & 105 \\\hline\end{array}$$ Hotspur Incorporated, a manufacturer of microwave ovens, is a price taker in its input and output markets. The firm hires labour at a constant wage rate of $800 per week and sells microwave ovens at a constant price of $80. Table 10.3 shows the relationship between the quantity of labour it hires and the quantity of microwave ovens it produces.
-Refer to Table 10.3.The amount of revenue added as a result of hiring a fourth worker is _________.

• A) $1200
• B) $7200
• C) 15 microwaves
• D) 90 microwaves

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Definitions:

Institutional Investors

Organizations that invest large amounts of money on behalf of their members, including pension funds, insurance companies, and mutual funds.

Sustainability

A way of doing business that supports the long-term ecological balance of the environment.

Post-industrial Materials

Materials or products that have been reused, recycled, or repurposed from industrial processes, reducing waste and supporting sustainable development.

Short-termism

The focus on immediate gains or results at the expense of long-term benefits, commonly seen in business strategies and investment decisions.