Suppose a Competitive Firm Is Paying a Wage of $12

question 41

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 the last worker hired increases output by three 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 additional workers.
• D)There is not enough information to answer the question.

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Definitions:

Rules Of Exponents

Guidelines that describe how to handle powers when multiplying, dividing, or raising them to other powers.

X

Typically used to represent an unknown variable in mathematics.

Masses

A term referring to the quantity of matter in a body, relevant in physics for calculating gravitational forces and inertia.

Mercury

The smallest and innermost planet in the Solar System, known for its swift orbit around the sun.