Say a Firm That Sells Its Product at a Price

question 41

Multiple Choice

Say a firm that sells its product at a price of $20 is using 20 units of labor. If the marginal product of the last unit of labor hired was 10, and the firm pays each worker a wage of $40, then this firm should

• A)hire more workers.
• B)decrease the number of workers.
• C)keep the same number of workers.
• D)decrease its output.

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Definitions:

Pneumatic Nail Gun

A tool powered by compressed air used for driving nails into wood or other materials, significantly speeding up construction and carpentry projects.

Copper Wiring

Electrical conductors used for transmitting electricity, known for its excellent conductivity and flexibility.

Business Products

Goods and services that are purchased or leased for the main purpose of using them in the operation of a business rather than for personal use or consumption.

Support Products

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