Suppose a Competitive Firm Is Paying a Wage of $12

question 168

Multiple Choice

Suppose a competitive firm is paying a wage of $12 an hour.Assume that labor is the only input.If hiring another worker would increase output by four units per hour, then to maximize profits the firm should

• A)not change the number of workers it currently hires.
• B)hire the extra worker.
• C)layoff some workers.
• D)There is not enough information to answer the question.

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Definitions:

African Apes

A group of apes that reside primarily in Africa, including gorillas, chimpanzees, and bonobos, known for their close genetic and behavioral links to humans.

First Mammals

Early ancestors in the mammal lineage that appeared during the Mesozoic era, showcasing traits distinct from their reptilian forebears.

Neandertal

Refers to an extinct species of humans (Homo neanderthalensis) known for their robust build and distinct skeletal features, closely related to modern humans.

Modern Human Line

Refers to the evolutionary lineage that led to Homo sapiens, emphasizing the development and characteristics that define modern humans.