Question

Suppose you own a company. If you hire ten men, each of them at $70,000 per year, your firm will be able to sell $1,000,000 in output this year, and you will be able to earn $50,000 in profits, an amount that is normal for a firm of your size in your industry. (Your firm’s other costs, such as for rent and advertising, will be $250,000 this year.) Now assume that you could hire ten women for $56,000 each, instead of hiring the men. What would your total profits be if you hired the women and they were just as productive as the more expensive men?

Answer 1

1000000
-70000*10
-250000
=50000
replace -70000*10 by -56000*10

Answer 2

thanks so much! :)