Assume that a profit-maximizing, perfectly competitive firm hires labor in a perfectly competitive labor market. If the market wage is $12 per hour and the price of the product is $3 per unit, the firm will ahire more workers if each worker can produce 3 units per hour bhire another worker if the output per hour of the additional worker exceeds 4 units chire fewer workers, since the hourly wage exceeds the cost of producing one unit of output dcontinue to operate in the short run but not in the long run

Fill in the Blank QuestionFill in the blank question.In an imperfectly competitive market, a price accompanying each increase in output (total product) applies not only to the marginal of each successive worker but also to all prior output units that otherwise could have been sold at a(n) price.Need help? Review these concept resources.

Your enterprising uncle opens a sandwich shop that employs seven people.The employees are paid $32 per hour and a sandwich sells for $8. If the market for sandwiches is competitive, and your uncle is maximising his profit: a) What is the value of the marginal product of the last worker he hired? b) What is that worker's marginal product? c) Suppose that your uncle purchases a new machine that increases the marginal product of each worker. How will this affect the number of workers that he hires? Explain.

Consider a competitive firm with a TC = 50 + 2q^2 + q. If price is $17, which statement is true? Group of answer choices The firm produces 4 units of output in the short run and is making an economic loss; the firm will exit the industry in the long run. The firm produces 8.5 units of output and this is the long-run equilibrium. The firm produces 4 units of output, and is making a positive economic profit; this is the long-run equilibrium. The firm produces 4 units of output, and is making a zero economic profit; this is the long-run equilibrium. The firm shuts down in the short run and produces zero output; the firm will leave the industry in the long run.

Multiple Choice QuestionThe following statement is true about what type of market: the lower price accompanying each increase in output (total product) applies not only to the marginal product of each successive worker but also to all prior output units that otherwise could have been sold at a higher price.Multiple choice question.A perfectly competitive marketA free marketAn imperfectly competitive market

The rational rule for a perfectly competitive market is to produce:Question 5Answera.at the output where the efficient quantity equals the benefit.b.less if the marginal benefit exceeds the marginal cost.c.the output level with minimum average cost and buy the quantity with the maximum benefit.d.more if the unit's marginal benefit exceeds its marginal cost.