When a competitive firm hired nine workers, its profits were $70. When it hired 10 workers, its output was went from 9 to 11 units. Each unit of output sold for $20 while the wage of each worker was $12. What is the firm's new profit level?

When a competitive firm hired nine workers, its profits were $70. When it hired 10 workers, its output was went from 9 to 11 units. Each unit of output sold for $20 while the wage of each worker was $12. What is the firm's new profit level?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

When a competitive firm hired nine workers, its profits were $70. When it hired 10 workers, its
output was went from 9 to 11 units. Each unit of output sold for $20 while the wage of each
worker was $12. What is the firm's new profit level?
> Question 11
In a conventional modeling of the minimum wage, the minimum wage has a greater impact on
employment when demand is elastic rather than inelastic.
False
O True

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