The Following Question Are Based on the Following Information for a Firm

question 28

Multiple Choice

The following question are based on the following information for a firm under conditions of perfect competition:

-If the price of labor increases to $50 per worker and the price of the product remains at $5 per unit,how many workers should the firm hire to maximize profits?

• A) 10
• B) 11
• C) 12
• D) 13
• E) 14

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Definitions:

Unemployment Insurance Benefits

Payments made by the government or a government-insured program to unemployed individuals who meet specific eligibility requirements.

Longest Recession

A period of extended economic decline longer than usual, marked by a significant reduction in economic activity.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations and marked by significant events shaping modern history.

Inflation

The rate at which the general level of prices for goods and services rises, eroding purchasing power.