The Bubby Gum factory produces bubble gum. Joanne is one of the employees, and she produces 10 packs of bubble gum per hour. Joanne's money wage rate is $12 per hour. If a packet of bubble gum sells for $1.00, then Joanne ________ because ________
A) should recommend that the Bubby Gum company should decrease the price of the bubble gum ; it would sell more and bring a larger profit
B) is creating a $2.00 per hour profit for the firm; her real wage rate is more than her output per hour
C) is creating a $2.00 per hour loss for the firm; her real wage rate is more than her output per hour
D) should ask for a raise in pay; then her real wage would be less than her output per hour
E) is the last person the Bubby Gump company will employ; an additional hire would produce equal the amount of additional labor to real wage per hour
C
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