Suppose a Competitive Firm Is Paying a Wage of $12

question 17

Multiple Choice

Suppose a competitive firm is paying 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 three units per hour, then to maximize profits the firm should

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

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Definitions:

Olfactory Cortex

Termination of the olfactory tract in the cerebral cortex within the lateral fissure of the cerebrum.

Olfactory Bulb

Ganglion-like enlargement at the rostral end of the olfactory tract that lies over the cribriform plate; receives the olfactory nerves from the nasal cavity.

Olfactory Tract

Nerve tract that projects from the olfactory bulb to the olfactory cortex.

Transmembranous Receptor

Proteins spanning across the membrane of cells that receive chemical signals from outside the cell and initiate a response within the cell.