Refer to the Data Provided in Table 10

question 129

Multiple Choice

Refer to the data provided in Table 10.3 below to answer the following question(s) .
Table 10.3
-Refer to Table 10.3. The firm currently employs 4 workers at the market wage of $480 per worker per day. If the firm wants to maximize its profits, it should

• A) hire fewer workers
• B) hire more workers.
• C) make no adjustments as it is already employing the profit-maximizing number of workers.
• D) shut down since it is incurring a loss.

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Definitions:

MPC

Marginal Propensity to Consume, which is the proportion of additional income that a consumer spends on goods and services as opposed to saving it.

Capital Goods

Long-term assets such as buildings, machinery, and equipment used in the production of goods and services.

Money Supply

The overall sum of money available in an economy at a designated moment.

Government Expenditures

Spending by government agencies on goods, services, and projects to fulfill public policies, which can influence a nation's economic performance.