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The Bubby Gum Factory Produces Bubble Gum

Question 94

Multiple Choice

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 Joanne ________ because ________.


A) is creating a $2.00 per hour loss for the firm;her real wage rate is more than her output per hour
B) is creating a $2.00 per hour profit for the firm;her real wage rate is more than her output per hour
C) should recommend that the Bubby Gum company should decrease the price of the bubble gum;it would sell more and bring a larger profit
D) should ask for a raise in pay;then her real wage would be less than her output per hour
E) is the last person the Bubby Gump company will employ;an additional hire would produce equal the amount of additional labor to real wage per hour

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