If the price of widgets is $2 and the real wage is $20 per hour then the firm must sell 10 widgets to cover the cost of an hour of labour.If the price of widgets falls to $1,how many widgets must the firms sell to cover the cost of an hour of labour?
A)15
B)30
C)40
D)10
E)20

Question

Quizplus · Accepted Answer

If the price of widgets falls to $1, the firm must sell 20 widgets to cover the $20 cost of an hour of labor.

If the Price of Widgets Is $2 and the Real