A firm operating in competitive input and output markets purchases new technology, which shifts the total product schedule from A to B, as shown in the data below.Schedule ASchedule BNumber of WorkersTotal ProductNumber of WorkersTotal Product130135240247348357454465559571663676At the market wage rate of $30 and product price of $5, this firm will
A. increase the number of laborers hired from 4 to 6.
B. increase the number of laborers hired from 4 to 5.
C. decrease the number of laborers hired from 4 to 3.
D. hire the same number of laborers in both situations.
Answer: B
Economics
You might also like to view...
When the U.S. interest rate rises, the demand for U.S. dollars ________ and the exchange rate ________
A) increases; falls B) does not change; rises C) increases; rises D) decreases; falls E) decreases; rises
Economics
The price of a currency will decrease when quantity demanded is less than quantity supplied
a. True b. False Indicate whether the statement is true or false
Economics