Suppose a Firm Sells a Good for a Perfectly Competitive

question 75

Multiple Choice

Suppose a firm sells a good for a perfectly competitive price of $5.The equilibrium wage rate is $10.The first worker it hires produces five units.Two workers produce a total of nine units.Given this information, the firm will:

• A)hire the first worker only.
• B)hire both the first and second workers.
• C)not hire either of the workers.
• D)hire only the second worker.