Suppose a Competitive Firm Is Paying a Wage of $12

question 17

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 hiring another worker would increase output by three units per hour, then to maximize 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:

Arbitration

A method of dispute resolution where an impartial third party makes a binding decision to resolve a conflict outside of court.

Deposition

A sworn, out-of-court oral testimony of a witness that is used for gathering information as part of the discovery process and, in limited circumstances, as testimony at trial.

Preserve Testimony

The practice of documenting and saving witness statements or depositions to ensure their availability for future legal proceedings.

Gravely Ill

A state of severe health condition that poses a threat to life or long-term well-being, often requiring intensive medical care.