Assume a Firm Employs 10 Workers and Pays Each $15

question 6

Multiple Choice

Assume a firm employs 10 workers and pays each $15 per hour.Further assume that the MP of the 10th worker is 5 units of output and that the price of the output is $4.According to economic theory,in the short run

• A)the firm should hire additional workers.
• B)the firm should reduce the number of workers employed.
• C)the firm should continue to employ 10 workers.
• D)More information is required to answer this question.

Comprehend the differences between public and private sector unions.

Learn about the impact and process of unionization on employees and managers.

Understand the role and process of third-party resolution mechanisms in labor disputes.

Understand the concept and application of union security and its implications.

---

Definitions:

Selling Price

The amount a customer pays to purchase a product or service.

Value-based Pricing

Pricing strategy where the price is based on the perceived value of a product or service to the customer rather than the cost of production.

Industrial Grinder

A machine tool used in manufacturing for grinding, which is a process of removing material using abrasion.

Preventive Maintenance

Routine maintenance and servicing of equipment to prevent unexpected breakdowns and failures.