Suppose a competitive firm is paying a wage of $12 an hour. Assume that labor is the only input. If hiring another worker would increase output by four units per hour, then to maximize profits the firm should
A) layoff some workers.
B) not change the number of workers it currently hires.
C) hire the extra worker.
D) There is not enough information to answer the question.
D
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At the beginning of the year, AAA-1 Towing owns trucks and buildings for a total value of $1 million. During the year, it invests $250,000 to replace towing trucks worth $230,000 destroyed in a flood and to cover $50,000 worth of depreciation
AAA-1 Towing's net investment was A) $20,000. B) $250,000. C) -$30,000. D) $200,000. E) $280,000.
Exhibit 13-1 Cable television monopolist
As shown in Exhibit 13-1, an unregulated cable television monopolist would operate at which point on its demand curve:
A. A. B. B. C. C. D. D.
Which of the following will shift the production possibilities curve to the right?
A. An increase in the unemployment rate from 6 to 8 percent. B. A decline in the efficiency with which the present labor force is allocated. C. A decrease in the unemployment rate from 8 to 6 percent. D. A technological advance that allows farmers to produce more output from given inputs.
In the above figure, the firm experiences constant returns to scale between output levels of
A. zero and Q1. B. Q2 and Q3. C. Q3 and Q4. D. any level greater than Q4.