The Bubby Gum factory produces bubble gum. Joanne is one of the employees, and she produce 10 packs of bubble gum per hour. Joanne's money wage rate is $12 per hour. Based on this information, the Bubby Gum company should
A) keep Joanne because she creates a profit for the firm.
B) fire Joanne because she creates a loss for the firm.
C) decrease Joanne's wage rate because she is paid too much.
D) increase its demand for labor.
E) None of the above answers are correct because more information about Joanne's real wage is needed to decide what to do with Joanne.
Correct Answer:
Verified
Q62: The lower the real wage rate,the
A)fewer workers
Q63: A firm's demand for labor depends on
Q69: The Bubby Gum factory produces bubble gum.
Q70: Firms hire more labor as long as
A)the
Q71: The demand for labor reflects the point
Q72: If the real wage rate decreases from
Q73: The real wage rate is the _
Q76: The quantity of labor demanded is the
Q78: As long as an additional worker hired
Q79: The demand for labor curve is
A)a vertical
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