A Profit-Maximizing Firm's Daily Total Revenue Is $155 with 3

question 183

Multiple Choice

A profit-maximizing firm's daily total revenue is $155 with 3 workers, $200 with 4 workers, and $230 with 5 workers. The cost of each worker is $40 per day. The firm should

• A)not hire a fourth worker.
• B)hire four workers.
• C)hire five workers.
• D)hire more than five workers.

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Definitions:

Double-masked

In medical studies, a trial in which neither the participants nor the researchers know who belongs to the control group and who belongs to the experimental group.

Placebo

An inert substance or treatment which has no therapeutic effect, used as a control in testing new drugs.

Anxiety

An emotion characterized by apprehension, tension, or discomfort stemming from the anticipation of an unclear result, frequently related to apprehension over what is to come.

Matched Control

A technique in scientific studies where individuals in a control group are deliberately matched with participants in the experimental group based on certain characteristics to ensure comparability.