Liu's Potato Chips Is a Perfectly Competitive Firm Currently Employing

question 149

Multiple Choice

Liu's Potato Chips is a perfectly competitive firm currently employing 30 workers. The marginal revenue product of the 30th worker is $7.00 per hour. The wage rate is $8.00 per hour. To increase profits, this firm should

• A) decrease employment until the MRP of labor equals $8.00.
• B) increase employment until the MRP of labor equals $8.00.
• C) continue hiring 30 workers because the firm earns a surplus of $1.00 on each worker hired.
• D) increase the price of potato chips so that the marginal revenue product increases to $8.00 per hour.

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Definitions:

Sexual Tension

describes the mutual feelings of attraction and desire often experienced between individuals, particularly when they resist physical intimacy.

Manifest Content

The literal content and storyline of a dream as remembered by the dreamer.

Latent Content

In psychoanalytic theory, this term refers to the hidden psychological meaning of dreams, beneath the manifest content or the dream as remembered by the dreamer.

Paradoxical

Something that appears self-contradictory or absurd but in reality expresses a possible truth.