The Bubby Gum factory produces bubble gum. Joanne is one of the employees, and she produces 10 packs of bubble gum per hour. Joanne's money wage rate is $12 per hour. If a packet of bubble gum sells for $1.00, then
A) Joanne is creating a $2.00 per hour profit for the firm.
B) Joanne is creating a $2.00 per hour loss for the firm.
C) the Bubby Gum company should pay Joanne more.
D) the Bubby Gum company should decrease the price of the bubble gum so it sells more and makes a larger profit.
E) None of the above answers is correct because more information about Joanne's real wage is needed to decide what to do.
B
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The total labor hours that all the firms in the economy plan to hire during a given time period at one particular real wage rate is the
A) demand for labor. B) supply of labor. C) quantity of labor demanded. D) quantity of jobs supplied. E) quantity of labor supplied.
Free markets can:
a. prouduce goods and services with maximum efficiency b. solve unemployment c. protect the environment d. all of these
A typical consumer consumes both coffee and donuts. After the consumer's income decreases, the consumer consumes more coffee but fewer donuts than before. For this consumer, coffee is a normal good, but donuts are an inferior good
a. True b. False Indicate whether the statement is true or false
Changes in the stocks of finished goods and goods in process as well as changes in the raw materials that businesses keep on hand is known as
A. fixed investment. B. inventory investment. C. the income approach. D. the expenditure approach.