The Table Below Contains Information About a Firm's Marginal Revenue

question 83

Multiple Choice

The table below contains information about a firm's marginal revenue product of capital. Suppose the rental price of capital is $425,000.How many units should the firm hire to maximize profit?

• A)The firm should hire 3,000 units or,if fractional units are possible,less than 4,000 but more than 3,000 units.
• B)The firm should hire 4,000 units or,if fractional units are possible,less than 5,000 but more than 4,000 units.
• C)The firm should hire 5,000 units.
• D)The firm should hire 6,000 units or,if fractional units are possible,less than 7,000 but more than 6,000 units.
• E)The firm should hire 7,000 units or,if fractional units are possible,less than 6,000 but more than 7,000 units.

Understand the behaviors contributing to both health risks and health protection among college students.

Appreciate the significance of physical activity and social support in maintaining a healthy lifestyle.

Acknowledge the impact of binge drinking on college students' health.

Grasp the importance of adopting healthy behaviors to improve life quality.

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Definitions:

Net Present Value

A method for evaluating the profitability of an investment, calculating the difference between the present value of cash inflows and outflows.

Monthly Interest Rate

The interest rate applied to a loan or debt for one month, often used to calculate the monthly interest payment.

Variable Cost

Costs that vary directly with the level of production or the volume of services provided.