When a Competitive Firm Hired Nine Workers,its Profits Were $100

question 29

Multiple Choice

When a competitive firm hired nine workers,its profits were $100.When it hired 10 workers,its output went from 9 to 11 units.Each unit of output sold for $10 while the wage of each worker was $12.What is the firm's new profit level?

• A) $20
• B) $8
• C) $108
• D) $12

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Definitions:

Postbox Rule

A principle that a mailed acceptance is effective when and where it is dropped into a mailbox.

Counteroffer

A new offer, the proposal of which rejects and terminates the offer available until then.

Unconditional Acceptance

An agreement to the terms of an offer without imposing any additional conditions or limitations.

Postbox Rule

A principle in contract law stating that an offer is considered accepted at the moment the acceptance is sent, not when it is received by the offeror.