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wrote...
Posts: 67
3 weeks ago

Question 1.

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

• not change the number of workers it currently hires.

• hire the extra worker.

• layoff some workers.

• There is not enough information to answer the question.

Question 2.

Suppose a competitive firm is paying a wage of $12 an hour and sells its product at $3 per unit. Assume that labor is the only input. If the last worker hired produces four units of output per hour, then to maximize profits the firm should

• not change the number of workers it currently hires.

• lay off some workers.

• hire another worker.

• There is not enough information to answer the question.
Source  Download
Microeconomics
Edition: 7th
Authors:
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Answer verified by a subject expert
wrote...
Posts: 64
3 weeks ago
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Answer 1

There is not enough information to answer the question.

Answer 2

not change the number of workers it currently hires.
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3 weeks ago
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Slight Smile Good luck on the rest
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