A profit-maximizing firm's daily total revenue is $155 with 3 workers, $200 with 4 workers, and $230 with 5 workers. The cost of each worker is $40 per day. The firm should:
A. Not hire a fourth worker
B. Hire four workers
C. Hire five workers
D. Hire more than five workers
B. Hire four workers
You might also like to view...
The U.S. transfer system takes funds from the rich and distributes them to the poor. This transfer has significantly impacted income equality in the U.S
Indicate whether the statement is true or false
Suppose an exhaustible resource can be sold only this period or next period. The resource owner is considering selling 100 tons of the resource this period
The future value of the resource when 100 tons are sold this period is less than the present value of the 100 tons sold this period multiplied by one plus the interest rate. What should the resource owner do? A) She should sell more than 100 tons this period. B) She should sell only 100 tons this period. C) She should sell less than 100 tons this period. D) She should not sell any of the resource in either period.
In perfectly competitive markets, transactions costs are:
A. generally quite high. B. a natural byproduct of making the transaction. C. low or nearly zero. D. seen as a nuisance and generally ignored when making a transaction.
The CPI basket of goods represents those goods and services purchased by urban consumers because it represents:
A. over 80 percent of our population. B. over 90 percent of our population. C. 78 percent of our population. D. 60 percent of our population.