Bob's Baubles, Inc, sells its product for $3 each in a perfectly competitive market. If it increases its workforce from 1,000 to 1,001, its output goes from 615 to 625 per day. Bob should hire the 1,001st worker only if:
a. the wage is more than $30 per day.
b. the wage is $30 or less per day
c. the wage is less than $10 per day.
d. the wage is less than $3 per day.
b
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According to the text, if individuals base their expectations on the past, we could say that their expectations are:
A. adaptive. B. regressive. C. historical. D. rational.
A commercial bank's reserves are equal to the amount of
A) the bank's loans. B) only the currency in its vault. C) currency in the bank's vault plus the balance on its reserve account at a Federal Reserve Bank. D) the bank's deposits. E) the bank's government securities.
Jones is hungry, but is willing to postpone lunch as long as he can have a much larger meal at dinner. The compensation of the larger meal at dinner time suggests that Jones
A) is a glutton. B) acts irrationally because it is best to have three meals a day. C) has a positive rate of time preference with regard to today's meals. D) does not consider lunch to be a scarce good.
While the CPI focuses on changes to prices for consumers, the PPI:
A. measures the prices of goods and services purchased by firms. B. stands for the producer price index. C. looks specifically at the price changes that affect the typical producer. D. All of these statements are true.