The Chart Below Describes the Short Run Productivity of Workers

question 20

Multiple Choice

The chart below describes the short run productivity of workers at Paper Pushers Inc. ,an office support firm that has no variable costs other than labor. $$\begin{array} { | l | l | } \hline \text { Workers } & \text { Pages per Hour } \\\hline 1 & 40 \\\hline 2 & 75 \\\hline 3 & 105 \\\hline 4 & 125 \\\hline 5 & 140 \\\hline 6 & 150 \\\hline 7 & 155 \\\hline\end{array}$$
If the price of pages increases,the demand for workers will

• A)remain the same,as the workers are hired in the labor market and the product is sold in the paper processing market.
• B)increase because the workers will be motivated to produce more.
• C)increase because the value of what the workers make has increased.
• D)decrease because at a higher sales price the firm will not have to produce as much output.

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