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 hiring another worker would increase output by three units per hour, then to maximize profits the firm should
A) not hire an additional worker.
B) not change the number of workers it currently hires.
C) hire another worker.
D) There is not enough information to answer the question.
A
Economics
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Full employment occurs when
A) the sum of frictional and structural unemployment is zero. B) the cyclical unemployment rate is zero. C) the structural unemployment rate is zero. D) the unemployment rate is zero. E) the frictional unemployment rate is zero.
Economics
Discuss the correct and incorrect economic analysis in the following statement
"If good weather in Hawaii creates a bumper crop of pineapples, the supply of pineapples will increase. This will result in a price decrease, which will then cause the supply of pineapples to decrease."
Economics