In a competitive industry, suppose the marginal revenue product (MRP) of the last doughnut baker hired is $35, the MRP of the last bagel baker hired is $15, and a bakery must pay doughnut bakers $40 a day and bagel bakers $10 per day. To maximize profits the bakery should hire:
A)	more doughnut bakers and less bagel bakers.
B)	less doughnut bakers and more bagel bakers.
C)	less of both doughnut bakers and bagel bakers.
D)	more of both doughnut bakers and bagel bakers.
Answer:B
In a competitive industry, suppose the marginal revenue product (MRP) of the last doughnut baker hired is $35, the MRP of the last bagel baker hired is $15, and a bakery must pay doughnut bakers $40 a day and bagel bakers $10 per day. To maximize profits the bakery should hire:
A)	more doughnut bakers and less bagel bakers. B)	less doughnut bakers and more bagel bakers. C)	less of both doughnut bakers and bagel bakers. D)	more of both doughnut bakers and bagel bakers.