Initially,when a Firm Hires a Fourth Worker,its Wage Rate Goes

question 8

Multiple Choice

Initially,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.Then the government imposes a minimum wage of $90 a worker.If the firm now 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.

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Definitions:

Consumer-Packaged Goods

Products that are sold in a package and used up by consumers over a short period.

Product Life Cycle

The stages a product goes through from development and introduction to the market, growth, maturity, and eventual decline.

Grocery and Discount Stores

Retail establishments that primarily sell food products and everyday items, often at reduced prices.

Hybrid Cars

Vehicles powered by a combination of internal combustion engines and electric motors, aiming to reduce fuel consumption and emissions.