Suppose a competitive firm pays a wage of $12 an hour and sells its product at $3 per unit. Assume that labor is the only input. If hiring another worker would increase output by five units per hour, then to maximize profits the firm should
A) hire the additional worker.
B) lay off some of its workers.
C) not change the number of workers it currently hires.
D) There is not enough information to answer the question.
A
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The total amount of producer surplus in a market is equal to the area below the supply curve
Indicate whether the statement is true or false
Which of the following is the smallest portion of the market basket of goods that makes up the CPI?
A) food and beverages B) apparel C) transportation D) housing
In the United States, ________ represents an attempt to curb anti-competitive practices,?such as the creation of a monopoly, concentration of market power through mergers with competitors, or collusion with competitors to fix prices or limit entry
a. price leadership b. price discrimination c. deregulation d. antitrust policy
As inflation increases, purchasing power ______.
a. increases b. decreases c. remains constant d. falls to zero