You have been hired by the no hassle collection agency to provide economic advice. the owner of the agency tells you that no hassle's only variable input is the number of collection agents. the hourly wage for collection agents is $40.00. the marginal revenue product curve for collection agents reaches its maximum at five workers with a marginal revenue product of $34.00. what advice would you give this firm?

a. shut down immediately, as the firm is not able to cover all of its variable costs.
b. produce as much as possible so as to maximize the difference between the wage paid to collection agents and their marginal revenue product.
c. hire five collection agents so as to minimize the amount of money the firm will lose.
d. increase the wage rate paid to collection agents so that their marginal revenue product will increase.

The partnership of douglas, ryan, and ellen has dissolved and is in the process of liquidation. on july 1, 2016, just before the second cash distribution, the assets and equities of the partnership along with profit and loss sharing ratios were as follows: cash $30,000receivable - net $20,000inventories $25,000equipment - net $30,000total assets $80,000liabilities $12,000douglas, capital (20%) $28,000ryan, capital (50%) $24,000ellen, capital (30%) $16,000total liab./equity $80,000assume that the available cash is distributed immediately, except for a $2,000 contingency fund that is withheld pending complete liquidation of the partnership. how much cash should be paid to each of the partners? a. $3,200 douglas, $8,000 ryan, $4,800 ellenb. $5,600 douglas, $14,000 ryan, $8,400 ellenc. $16,000 douglas, $0 ryan, $0 ellend. $8,000 douglas, $0 ryan, $8,000 ellen