A new coffee shop opens and to maximize profit it hires 5 workers at the competitive wage rate. The price of a cup of coffee is $2 and the value of marginal product of workers in the coffee shop is $8 an hour. If the price of a cup of coffee rises from $2 to $3, the value of marginal product of the last worker hired before the price change and the number of workers hired 000 A. increases; decreases B. decreases; increases C. decreases; decreases OD. does not change; does not change OE. increases; increases ***

A new coffee shop opens and to maximize profit it hires 5 workers at the competitive wage rate. The price of a cup of coffee is $2 and the value of marginal product of workers in the coffee shop is $8 an hour. If the price of a cup of coffee rises from $2 to $3, the value of marginal product of the last worker hired before the price change and the number of workers hired 000 A. increases; decreases B. decreases; increases C. decreases; decreases OD. does not change; does not change OE. increases; increases ***

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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