ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN: 9781337408059
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 11, Problem 2P
To determine
The firm’s profit maximizing rule in determining how many workers to hire.
Concept Introduction:
Profit Maximization: It is the ability of a business to achieve the highest level of profits within a short period of time with low operating expenses. Profit maximizing is achieved when a firm operates where the marginal revenue is equal to the marginal cost.
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25 - Suppose that the firm's only variable input is labor. When 50 workers are used, the average
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138317
d)
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(Explicit and Implicit Costs) Determine whether each of the folowing is an explicit cost or an implicit cost
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d The wages that firm owners could earn if they did notwork for themsehves
nts per question)
1a0od it produces is constant, than it
NAME:
NT A QUIZ
ABC Limited sells its product in a perfectly competitive market for a price of $15
1.
per
unit and hires workers at a daily wage of $75. Labor is the only factor cost, and the firm is
currently earning profits. If ABC hires one more worker and output increases by 5 units
per
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a. decrease by $5
b. decrease by $75
c. increase by $75
d. increase by $15
e. remain unchanged.
Chapter 11 Solutions
ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
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