Suppose a Competitive Firm Is Paying a Wage of $12

question 55

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 produces four units of output per hour, then to maximise profits the firm should

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

---

Definitions:

Animations

dynamic visuals or sequences of images that create the illusion of motion used in multimedia, games, and user interfaces to enhance user experience.

Tables

Structured arrangements of data, typically in rows and columns, that organize and display information in a clear and accessible manner.

Queries

In computing, questions or requests for information from a database, typically written in SQL (Structured Query Language).

Forms

User interface components that collect input from the user for processing or storage.