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-The Figure Above Shows a Local Lawn Cutting Service's Demand

Question 109

Multiple Choice

-The figure above shows a local lawn cutting service's demand for labor curve when the price of cutting an acre of lawn is $50 per acre. If the market wage is $300 per day, the firm will NOT hire a fourth worker because the fourth worker would create A) an economic loss and the firm would shut down. B) additional revenue that exceeds the worker's wage. C) additional revenue that exceeds the worker's value of marginal product. D) additional revenue that falls short of the worker's wage.
-The figure above shows a local lawn cutting service's demand for labor curve when the price of cutting an acre of lawn is $50 per acre. If the market wage is $300 per day, the firm will NOT hire a fourth worker because the fourth worker would create


A) an economic loss and the firm would shut down.
B) additional revenue that exceeds the worker's wage.
C) additional revenue that exceeds the worker's value of marginal product.
D) additional revenue that falls short of the worker's wage.

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