Suppose That One Knows That Firm a Is Maximizing Profit

question 43

Multiple Choice

Suppose that one knows that firm A is maximizing profit and is paying a wage rate of $10 to its workers.It must therefore be true that

• A) the firm is a perfect competitor in the labour market.
• B) the value of the marginal product of the last worker is greater than $10.
• C) the firm is a monopsonist.
• D) the value of marginal product of the last worker is less than $10.
• E) the extra cost of hiring the last worker was greater than or equal to $10.

---

Definitions:

Heart Disease

A range of conditions that affect the heart, including blood vessel diseases, heart rhythm problems, and heart defects.

Stress

A state of mental or emotional strain or tension resulting from adverse or demanding circumstances.

Risk of Illness

The probability or chance that an individual will develop a disease or health condition over a certain period.

Environmental Stressors

External factors or conditions in the environment that can cause stress, such as noise, pollution, or extreme temperatures.