A small specialty cookie$$ company, whose only variable input is$$ labor, finds that the average worker can produce

$5050$

cookies per$$ day, the cost of the average worker is

$$$$128128$

per$$ day, and the price of a cookie is

$$$$1\mathrm{.}001\mathrm{.}00.$

Is the firm maximizing$$ profit?

Part $2$

The firm

Part $3$

A$.$

is

maximizingmaximizing

profit because the price of the output is not equal to the wage.

B$.$

is not maximizing profit because the marginal revenue product of labor is

lessless

than the wage.

C$.$

is not maximizing profit because the marginal revenue product of labor is

greatergreater

than the wage.

D$.$

is maximizing profit because the marginal product of labor is

lessless

than the wage.

E$.$

is not maximizing profit because the marginal product of labor is

lessless

than the wage.