If a Worker Can Produce 20 Units of Output Which

question 8

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 labour market.
• D) There is insufficient information to answer the question.

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Definitions:

Reduced Value Risks

Risks that lead to the diminishing of an asset's worth or the potential decrease in earnings.

Service Risks

Service risks are potential problems or threats that could negatively affect the delivery, quality, or perception of services offered by an organization to its customers.

Reference Checks

The process of contacting previous employers, colleagues, or professional contacts of a job applicant to verify information and gain insights into the applicant's work ethic and abilities.

Organizational Politics

The activities within an organization aimed at improving personal or departmental power and influence, often at the expense of organizational goals.