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# The Bubby Gum factory produces bubble gum. Joanne is one of the employees, and she produces 10 packs

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The Bubby Gum factory produces bubble gum. Joanne is one of the employees, and she produces 10 packs of bubble gum per hour. Joanne's money wage rate is $12 per hour. If a packet of bubble gum sells for$1.00, then Joanne ________ because ________.
A)  is creating a $2.00 per hour loss for the firm; her real wage rate is more than her output per hour B) is creating a$2.00 per hour profit for the firm; her real wage rate is more than her output per hour
C) should recommend that the Bubby Gum company should decrease the price of the bubble gum; it would sell more and bring a larger profit
D) should ask for a raise in pay; then her real wage would be less than her output per hour
E) is the last person the Bubby Gump company will employ; an additional hire would produce equal the amount of additional labor to real wage per hour
Textbook

## Essential Foundations of Economics

Edition: 7th
Authors:
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Start by doing what's necessary; then do what's possible; and suddenly you are doing the impossible.
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SmooothSmoooth
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