If the MRP of the 13th worker hired is $40 and the MLC of that worker is $34, the firm
a. lost money by hiring that worker
b. cannot hire that worker unless more capital is added to production, in which case the firm will profit if the cost of the worker and capital is less than the revenue theworker generates
c. profited only if price of the good increased
d. must have lost money on the 12 workers it hired prior to hiring this 13th worker
e. profited by hiring that worker
E
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When the velocity of circulation equals 4 in 2010, this fact means that
A) consumers held four dollars in wealth for each dollar they spent in 2010. B) on average, each dollar of money in the economy purchased four dollars of goods and services in GDP in 2010. C) for each additional dollar of money injected into the economy, the price level rose 4 percent in 2010. D) real output of goods and services in GDP rose by four dollars for each additional dollar of money consumers saved.
Firms are better off using rebates rather than just lowering the price of a good because
A) people view the firm in a positive light because now poorer people will be able to afford their good. B) customers overestimate the value of the rebate and so buy more of the good, making profits higher than if they just lowered the price. C) only those who place a low value on their time or are price sensitive actually redeem the rebate, making profits higher than if they just lowered the price. D) lowering the price is inefficient and creates additional deadweight loss.