Suppose a Competitive Firm Is Paying a Wage of $12

question 243

Multiple Choice

Suppose a competitive firm is paying 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 three units per hour, then to maximise profits the firm should

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

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Definitions:

Feedback

The transmission of evaluative or corrective information about an action, event, or process to the original source.

Emotionally Charged

Describes situations or issues that evoke strong emotional reactions.

Group Member

An individual who is part of a collective or team that works together towards common goals or participates in shared activities.

Intervenes

To step into a situation with the aim of changing the course of events or addressing an issue.