Suppose a Competitive Firm Is Paying a Wage of $12

question 192

Multiple Choice

Suppose a competitive firm is paying a wage of $12 an hour and sells its product at $3 per unit.Assume that labor is the only input.If the last worker hired produces four units of output per hour, then to maximize profits the firm should

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

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Definitions:

OSHA Compliance Officers

Individuals responsible for inspecting workplaces to ensure they comply with the regulations set by the Occupational Safety and Health Administration.

Citations

References or quotations made to acknowledge the work or ideas of others, typically used in academic and research contexts.

Job Hazard Analysis

A systematic approach to identifying and evaluating hazards associated with specific jobs or tasks to minimize the risk of injury or illness to employees.

Online Suggestion Program

A digital platform that allows employees to submit ideas for improvements or feedback within an organization.