If a Worker Can Produce 20 Units of Output Which

question 59

Multiple Choice

If a worker can produce 20 units of output which can be sold for $4 per unit, what is the maximum wage that firm should pay to hire this worker?

• A)$80
• B)$80 minus the firm's profit markup
• C)It depends on what the going wage rate is in the labor market.
• D)There is insufficient information to answer the question.

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Definitions:

Infrastructure

The fundamental physical and organizational structures and facilities (e.g., buildings, roads, power supplies) needed for the operation of a society or enterprise.

Brain Drain

The tendency for talented people from developing countries to become educated in a developed country and remain there after graduation.

Developing Countries

are nations with a lower living standard, underdeveloped industrial base, and low Human Development Index (HDI) compared to more developed countries.

Malnutrition

A condition that results from eating a diet in which one or more nutrients are either not enough or are too much, causing health problems.