When a Firm Hires a Fourth Worker,its Wage Rate Goes

question 23

Multiple Choice

When a firm hires a fourth worker,its wage rate goes from $80 a worker to $90.The marginal revenue product of the fourth worker is $100.If the firm hires the fourth worker,its profits

• A) will increase by $10.
• B) will increase by $20.
• C) will decrease by $10.
• D) will decrease by $20.

Understand financial strategies that can improve a company's financial performance (e.g., increasing ROA).

Identify and calculate key financial ratios such as inventory turnover, interest coverage, and quick ratio.

Analyze the leverage and profitability of a company using financial data.

Understand the concept of a competitive advantage and strategies to achieve it.

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Definitions:

Domestic Supply

The total quantity of goods and services produced within a country that are available for domestic consumption or export.

Domestic Demand

The total demand for goods and services within a specific country, reflecting the consumption patterns of its residents.

World Price

The global market price of a product or service, determined by international supply and demand.

International Trade

The exchange of goods and services between countries, allowing for the expansion of markets and access to resources, goods, and services.