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 the last worker hired increases output by three units per hour, then to maximize profits the firm should
A) hire additional workers.
B) not change the number of workers it currently hires.
C) lay off some of its workers.
D) There is not enough information to answer the question.
C
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Even when transactions are facilitated with money, imports are paid for by exports
Indicate whether the statement is true or false
A firm with two or more owners who have unlimited liability is known as
A) a partnership. B) a proprietorship. C) a corporation. D) an establishment.
Refer to Table 20-15. Looking at the table above, real average hourly earnings were equal to ________ in 2015
A) $9 B) $9.52 C) $10 D) $12
If both prices increase by 10 percent and money income remains constant, the budget line for both goods in question will:
a. become steeper b. become flatter c. will have the same slope d. will become vertical.