Suppose a Competitive Firm Pays a Wage of $12 an Hour

question 159

Multiple Choice

Suppose a competitive firm pays a wage of $12 an hour and sells its product at $3 per unit.Assume that labor is the only input.If hiring another worker would increase output by five 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 the additional worker.
• D)There is not enough information to answer the question.

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Definitions:

Articles Of Incorporation

These are formal documents filed with a governmental body to legally document the creation of a corporation.

Quorum

The minimum number of members required to be present at a meeting to make the proceedings of that meeting valid.

Shareholders Meeting

A gathering of the shareholders of a company where decisions regarding the company's affairs are discussed and voted on.

Model Nonprofit Corporation Act (MNCA)

A template legislation that provides a basis for the statute governing nonprofit corporations in some states.