-The Table Above Shows the Number of Kilograms of Bricks

question 106

Multiple Choice

-The table above shows the number of kilograms of bricks that can be produced by the Red Brick Company as the number of workers hired increases. The brick market is perfectly competitive and each kilogram of bricks sells for $20. The labour market is competitive and the wage rate is $30 an hour. When the Red Brick Company maximises its profit, it produces _______ kilograms of bricks an hour.

• A) 19
• B) 22
• C) 21
• D) 10

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Definitions:

Endowments

The resources or assets that are provided to individuals or institutions which can generate income or have intrinsic value.

Competitive Pure Exchange Economy

An economic model where agents trade existing goods without the production of new goods, under perfect competition.

Initial Endowment

Refers to the initial allocation of goods, resources, or wealth that an individual or entity possesses before engaging in any transactions.

Diagonal Line

A straight line connecting two nonadjacent corners of a figure, such as a square or rectangle, or a line segment that runs across a geometric figure.