Suppose a Competitive Firm Is Paying a Wage of $12

question 41

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 maximise 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.

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Definitions:

Lacunae

Small spaces or cavities within bone or cartilage tissue that house cells.

Avascular

Lacking blood vessels, referring to tissues or structures that do not have their own blood supply.

Cartilage

A flexible, connective tissue found in various forms in the larynx and respiratory tract, among other locations. It provides structure and support.

Adipose Tissue

A type of body tissue that stores fat, which serves as a source of energy, insulation, and cushioning for organs.