Use the information given in the table below to answer the following question(s) .Assume the firm hires labor competitively and sells its product in a competitive price-taker market at a price of $2 per unit.
Table 12-7
-Refer to Table 12-7.If the market wage rate is $5 per day,how many workers should the firm employ if it wants to maximize profits?
Definitions:
Commercial Paper
An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories.
Treasury Note
Debt obligation of the federal government with original maturity between 1 and 10 years.
Dow Jones Industrial Average (DJIA)
An index that shows how 30 large, publicly-owned companies based in the United States have traded during a standard trading session in the stock market.
Dollar Price
The cost or value of a financial instrument or commodity expressed in terms of US dollars.
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