Suppose a Competitive Firm Is Paying a Wage of $12

question 94

Multiple Choice

Suppose a competitive firm is paying a wage of $12 an hour and sells its product at $3 per unit.Assume that labour is the only input.If the last worker hired increases output by three units per hour, then to maximize profits the firm should

• A)not change the number of workers it currently hires.
• B)lay off some of its workers.
• C)hire additional workers.
• D)There is not enough information to answer the question.

---

Definitions:

Governments

Institutions or bodies that govern a community, region, or country, responsible for setting and implementing policies and laws.

Alfalfa

A perennial flowering plant widely cultivated as fodder for livestock, known for its high nutrient content and nitrogen-fixing ability.

Potato Fields

Agricultural land specifically cultivated for growing potatoes.

Integrated Pest Management

Integrated pest management (IPM) is an ecological approach to controlling pests, using a combination of techniques and strategies to minimize environmental impact and pesticide use.