Assume a firm employs 10 workers and pays each $15 per hour.Further assume that the MP of the 10th worker is 5 units of output and that the price of the output is $4.According to economic theory,in the short run
A) the firm should hire additional workers.
B) the firm should reduce the number of workers employed.
C) the firm should continue to employ 10 workers.
D) More information is required to answer this question.
Correct Answer:
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Q1: The difference between the short-run and the
Q2: When the law of diminishing returns takes
Q4: Decreasing returns to scale
A)indicate that an increase
Q5: The marginal product of the variable input
A)is
Q6: The term Production Function refers to the
A)use
Q7: A firm that operates in Stage III
Q8: Stage III of the short-run Production Function
Q9: Which of the following indicates when Stage
Q10: Which of the following statements about the
Q11: Which of the following indicates when Stage
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