Suppose a Competitive Firm Is Paying a Wage of $12

question 250

Multiple Choice

Suppose a competitive firm is paying a wage of $12 an hour and sells its product at $3 per unit.Assume that labor is the only input.If the last worker hired increases output by three units per hour, then to maximize 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:

Prefrontal Cortex

The part of the brain located at the front of the frontal lobe, critical for decision making, social behavior, and moderating complex cognitive behavior.

Basal Ganglia

Large neuron clusters located above the thalamus and under the cerebral cortex that work with the cerebellum and the cerebral cortex to control and coordinate voluntary movements.

Amygdala

A region of the brain within the temporal lobe, involved in emotion processing, fear responses, and memory association.

Serotonin

A neurotransmitter in the brain associated with mood regulation, appetite, and sleep, among other functions.