Author Question: If a firm hires its fourth worker for 5 and its fifth worker for 8, then a. the firm is a ... (Read 89 times)

nelaaney · **on:** Jun 30, 2018

If a firm hires its fourth worker for 5 and its fifth worker for 8, then
a. the firm is a monopolist.
b. the firm must be substituting capital for labor.
c. the fifth worker must have been less productive than the fourth.
d. the firm is not maximizing its profit.
e. the labor market is not perfectly competitive.

Question 2

Which of the following is the purpose of a minimum wage?
a. To reduce the wage rates of high-income workers
b. To keep a track of the changes in the wage rate in an unskilled labor market
c. To deal with the problem of unemployment in the market
d. To help increase the profits earned by the producers
e. To raise the wage rate for the lowest income workers