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Consider that you are running a small firm that produces luxury footwear. Since the demand is increasing, you plan to lease an additional equipment for
Consider that you are running a small firm that produces luxury footwear. Since the demand is increasing, you plan to lease an additional equipment for 30 days for $18000.Tthe firm can produce additional 80 pairs during that time period that it sells for $300 each. You also need two workers for 30 days to operate the machine and will pay them $25/hour each, who will work for 10 hours a day. Would you lease the machine and hire the workers? Explain in detail supporting your answer with calculations and Value of Marginal Product concept.
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