Suppose a Competitive Firm Is Paying a Wage of $12

question 168

Multiple Choice

Suppose a competitive firm is paying a wage of $12 an hour.Assume that labor is the only input.If hiring another worker would increase output by four units per hour, then to maximize profits the firm should

• A)not change the number of workers it currently hires.
• B)hire the extra worker.
• C)layoff some workers.
• D)There is not enough information to answer the question.

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Definitions:

Universalism

A philosophy or ethical stance emphasizing fairness, equality, and the importance of treating all people and cultures with respect.

Spotlight Questions

Questions that test the ethics of a decision by exposing it to scrutiny through the eyes of family, community members, and ethical role models.

Ethical Behaviour

Conduct that is aligned with accepted principles of right or wrong governing the professional and personal actions of an individual or group.

Ethical Dilemma

A situation where an individual faces a choice between two or more morally right or acceptable courses of action that are in conflict.