Aurora Custom Cabinets produces and sells custom kitchencabinets. The firm has d

Question

Aurora Custom Cabinets produces and sells custom kitchencabinets. The firm has determined that if it hires 10workers, it can produce 4 sets of cabinets per day. If ithires 11 workers, it can produce 4.2 sets of cabinets perday. It sellls each set of cabinets for $2000, and it payseach of its worker $200 per day. a. For the 11th worker, the walue of the marginal product oflabor is $500 b. Fro the 11th worker, the marginal revenue product is$400 c. The firm is maximizing its profit. d. if the firm is emplying 11 worker, then its profit wouldincrease if it cut back to 10 workers. Aurora Custom Cabinets produces and sells custom kitchencabinets. The firm has determined that if it hires 10workers, it can produce 4 sets of cabinets per day. If ithires 11 workers, it can produce 4.2 sets of cabinets perday. It sellls each set of cabinets for $2000, and it payseach of its worker $200 per day. a. For the 11th worker, the walue of the marginal product oflabor is $500 b. Fro the 11th worker, the marginal revenue product is$400 c. The firm is maximizing its profit. d. if the firm is emplying 11 worker, then its profit wouldincrease if it cut back to 10 workers.

Explanation / Answer

B. For the 11th worker , the marginal revenue product is $ 400.

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