A firm operating in competitive input and output markets purchases new technology, which shifts the total product schedule from A to B, as shown in the data below.Schedule ASchedule BNumber of WorkersTotal ProductNumber of WorkersTotal Product130135240247348357454465559571663676At the market wage rate of $30 and product price of $5, this firm will

A. increase the number of laborers hired from 4 to 6.
B. increase the number of laborers hired from 4 to 5.
C. decrease the number of laborers hired from 4 to 3.
D. hire the same number of laborers in both situations.


Answer: B

Economics

You might also like to view...

? Refer to Table 4-1. At $10, what is the surplus?

A. 4,500 B. 3,000 C. 1,500 D. 0

Economics

Coordination of economic policies among nations is a prisoner's ________ because if all countries go it alone, they will choose to ________

A) dilemma; compete B) conundrum; cooperate C) sentence; compete D) dilemma; cooperate E) quandary; collude

Economics

Suppose that you decide to purchase either stocks or bonds of a particular corporation and you also prefer to receive some returns from the securities every year. Which should you buy - stocks or bonds? Why?

What will be an ideal response?

Economics

Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:

A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.

Economics