Suppose a Competitive Firm Produces 100 Units of X for a Price

question 21

Multiple Choice

Suppose a competitive firm produces 100 units of X for a price of $10 a unit.The firm employs labor such that the marginal product of labor is 20.The wage paid for one unit of labor is $60.Given that capital is kept fixed,the firm _____.

• A)is in equilibrium
• B)is suffering an economic loss
• C)should increase production
• D)should reduce output

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Definitions:

Hostile

Expressing feelings of anger, aggression, or resentment, often resulting in negative interactions.

Person-Oriented

An approach or perspective focusing on understanding and analyzing individuals' complexities, typically in contrast to variable-oriented approaches.

Aggression Stability

The consistency over time in aggressive behavior patterns, indicating that the tendency towards aggression can be a persistent aspect of personality.

Diminish

To reduce or make less in size, importance, or intensity over time or through certain circumstances.