Joan rents ovens at a local shared commercial kitchen to make cakes. The table below shows the number of ovens and the marginal product. Suppose that Joan sells her cakes for $15.00.OvensMarginal Product (cakes per day)Price per CakeMarginal Revenue Product0--$15.00--11015.00$150.002815.00120.003615.0090.004415.0060.005215.0030.00If the cost to rent an oven for the day is $60, how many ovens will Joan rent? Multiple Choice three ovens two ovens five ovens four ovens

Since price is constant, the market is competitive. Marginal product refers to change in total…

Answered: Joan rents ovens at a local shared…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Joan rents ovens at a local shared commercial kitchen to make cakes. The table below shows the number of ovens and the marginal product. Suppose that Joan sells her cakes for $15.00.

Ovens	Marginal Product (cakes per day)	Price per Cake	Marginal Revenue Product
0	--	$15.00	--
1	10	15.00	$150.00
2	8	15.00	120.00
3	6	15.00	90.00
4	4	15.00	60.00
5	2	15.00	30.00

If the cost to rent an oven for the day is $60, how many ovens will Joan rent?

Multiple Choice

three ovens
two ovens
five ovens
four ovens

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