A firm produces handcrafted wooden chairs, employing both skilled craftspersons and automated equipment in its plant. The selling price of a chair is h100. A craftsperson earns h900 per week and can produce 10 chairs per week. Automated equipment leased for h800 per week also can produce 10 chairs per week
The firm would like to increase weekly output by 50 chairs. The firm would most likely enhance profits by:
A. hiring additional craftspersons. B. leasing additional automated equipment. C. leasing additional automated equipment and hiring additional craftspersons in equal proportion.
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