If an Additional Worker Can Produce an Additional 20 Units

question 69

Multiple Choice

If an additional worker can produce an additional 20 units of output which can be sold for $4 per unit, what is the maximum wage that this perfectly competitive firm should pay to hire this worker?

• A)$80
• B)$80 minus the firm's profit markup
• C)It depends on what the going wage rate is in the labor market.
• D)There is insufficient information to answer the question.

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Definitions:

Illegal

Activities or actions that are forbidden by law, and which are punishable by sanctions or other legal consequences.

Marital Status

A legally defined condition of an individual regarding marriage, such as single, married, divorced, or widowed.

Termination

The act of ending or concluding something, often referring to the cessation of employment.

Cessation of Employment

The act of ending the relationship between an employer and an employee.