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Consider a small firm that is producing winter jackets. It can lease an additional sewing machine ...

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Consider a small firm that is producing winter jackets. It can lease an additional sewing machine ...

Consider a small firm that is producing winter jackets. It can lease an additional sewing machine for one month for $750. With this additional machine, the firm can produce an additional 6 jackets during that time period that it sells for $125 each. Hiring the marginal machine adds ________ to the firm's profit and so it should ________ the machine.

▸ $0; be indifferent as to whether to lease

▸ $750; lease

▸ -$750; lease

▸ $750; not lease

▸ -$750; not lease

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Microeconomics

Edition: 17^th

Author: Ragan

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