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:

Commitment

The state or quality of being dedicated to a cause, activity, or significant other, often involving a promise or assurance to continue involvement.

Self-development

The process of personal growth or improving oneself through activities such as education, self-reflection, and the acquisition of new skills.

Relationship Development

The process through which interpersonal connections grow and evolve over time, typically involving stages of initiation, growth, and maintenance.

Self-concept

A person's perception and awareness of themselves, including beliefs about their own attributes, behaviors, and how they are perceived by others.