To Get a Profit-Maximizing Firm in a Perfectly Competitive Labor

question 18

Multiple Choice

To get a profit-maximizing firm in a perfectly competitive labor market to hire another worker, the firm will need to

• A) lower the wage rate paid to that last worker hired and also to all previous workers hired.
• B) raise the wage rate paid to that last worker hired and also to all previous workers hired.
• C) lower the wage rate paid to the last worker hired only.
• D) raise the wage rate paid to the last worker hired only.

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Definitions:

Bond's Life

The period from the issuance of a bond until it matures and the principal is repaid.

Market Rate

The prevailing price or interest rate available in the open market for goods, services, or securities.

Par Value

The nominal or face value of a bond, stock, or other financial instrument, established at the time of issuance.

Semiannually

Occurring twice a year, often referring to payments or interest calculations.