Suppose a competitive firm is paying 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 three units per hour, then to maximize profits the firm should
A) not hire an additional worker.
B) not change the number of workers it currently hires.
C) hire another worker.
D) There is not enough information to answer the question.
A
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In the above figure, the average fixed cost curve is curve
A) A. B) B. C) C. D) D.
True or false? The Edgeworth box version of inter-personal trade requires the individuals to be in close proximity of one another
A) True, that way they can see each other's endowments and prices. B) False, begin in close proximity is not required for mutually beneficial trade to occur in the Edgeworth box. C) True, the Edgeworth box only works when there folks see "eye-to-eye." D) False, although prices are only valid if they are communicated in person.
The downward slope of the demand for money curve reflects the fact that
A) people hold more of their wealth in the form of money as the price level rises. B) people hold more of their wealth in the form of money as the price level falls. C) people hold more of their wealth in the form of money as the interest rate rises. D) people hold more of their wealth in the form of money as the interest rate falls.
Demand-pull inflation is associated with:
a. decreasing total spending (demand). b. increasing total spending (demand). c. decreasing costs of production (supply). d. increasing costs of production (supply).