The Bubby Gum factory produces bubble gum. Joanne is one of the employees, and she produces 10 packs of bubble gum per hour. Joanne's money wage rate is $12 per hour. If a packet of bubble gum sells for $1.00, then
A) Joanne is creating a $2.00 per hour loss for the firm.
B) Joanne is creating a $2.00 per hour profit for the firm.
C) the Bubby Gum company should decrease the price of the bubble gum so it sells more and makes a larger profit.
D) the Bubby Gum company should pay Joanne more.
E) the Bubby Gum company should increase its demand for labor.
Correct Answer:
Verified
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