Suppose a Competitive Firm Is Paying a Wage of $12

question 196

Multiple Choice

Suppose a competitive firm is paying a wage of $12 an hour.Assume that labour is the only input.If hiring another worker would increase output by four units per hour, then to maximise profits the firm should

• A)not change the number of workers it currently hires.
• B)hire the extra worker.
• C)lay off some workers.
• D)There is not enough information to answer the question.

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Definitions:

M'Naghten

A legal standard used to evaluate the criminal responsibility of a defendant claiming insanity, focusing on the ability to understand right from wrong at the time of the crime.

Durham

A city in North Carolina, known for its research universities and technological companies, or a historic city in Northeast England, famous for its Norman Cathedral.

Irresistible Impulse

A legal defense asserting that a defendant was unable to control their actions due to a mental illness, leading to a criminal act.

American Law Institute (ALI)

A prestigious, independent organization in the United States that produces scholarly work to clarify, modernize, and improve the law.