Refer to the graph shown. If market price decreases from $7.00 per unit to $6.00 per unit, a profit-maximizing perfectly competitive firm will:
A. decrease output from 850 to 750.
B. produce 850 units of output.
C. increase output from 650 to 750.
D. continue to produce 850 units.
Answer: A
Economics
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A corporate executive makes the following statement – "The company must keep hiring more workers up to the point where the marginal productivity of the last worker we hire is zero. This way we can maximize the total productivity of the firm
" Critically evaluate this statement. Also comment on whether this is the correct objective function for the firm.
Economics