If a Firm Hires 12 Workers at $9 Per Hour

question 10

Multiple Choice

If a firm hires 12 workers at $9 per hour each and the 13^th worker will be hired only if the wage rate falls to $8 per hour,the marginal wage rate must be

• A)-$8.
• B)$8.
• C)-$4.

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Definitions:

Margin Loan

A loan provided by brokers to investors that allows them to buy securities by borrowing funds, using the purchased securities as collateral.

Maintenance Requirements

The minimum equity amount that must be maintained in a margin account.

Margin Accounts

Brokerage accounts that allow investors to borrow money from the broker to buy securities, subject to maintenance requirements.

Primary Market

The primary market is where securities are created and sold for the first time, involving direct transactions between issuers and investors.