A Firm Produces in a Perfectly Competitive Market and Hires

question 55

Multiple Choice

A firm produces in a perfectly competitive market and hires labor in a perfectly competitive labor market.The firm hires four workers, the marginal product of the fourth worker is 4, and the wage rate is $40.The firm produces 100 units of the product, which sell for a price of $10.This firm is

• A)maximizing profit when it hires four workers
• B)not maximizing profit and should hire more workers to increase profit
• C)not maximizing profit and should hire fewer workers to increase profit
• D)not maximizing profit when it produces 100 units of the product and should increase production to increase profit
• E)not maximizing profit when it produces 100 units of the product and should decrease production to increase profit

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Definitions:

Primates

An order of mammals that includes humans, monkeys, and apes, characterized by large brains, forward-facing eyes, and opposable thumbs.

Virulence

A measure of the severity or harmfulness of a pathogen or disease, often in terms of its ability to cause illness or mortality in its host.

Pathogens

Microorganisms such as bacteria, viruses, fungi, and parasites that can cause disease in their host.

Evolution

The sequence through which a variety of living organisms are conjectured to have developed and branched from their early forms over the Earth's historical span.