Suppose a Competitive Firm Pays a Wage of $12 an Hour

question 25

Multiple Choice

Suppose a competitive firm pays a wage of $12 an hour and sells its product at $3 per unit.Assume that labour is the only input.If hiring another worker would increase output by five units per hour, then to maximise profits the firm should

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

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Definitions:

Fear of Criticism

An apprehension or anxiety experienced by individuals about being judged, evaluated negatively, or receiving negative feedback from others.

Family Access

The ability of family members to reach resources, services, or institutions necessary for their welfare.

Single-father Homes

Households in which children live with their father as the sole parent or caregiver.

Single-mother Homes

Households headed by a solo female parent, responsible for the upbringing of her children without a male partner.