Question: A competitive firm is using its economically efficient technology and is currently earning zero economic profits. The firm is considering hiring another employee. Assume nothing

A competitive firm is using its economically efficient technology and is currently earning zero economic profits. The firm is considering hiring another employee.

Assume nothing else changes in the market or the firm's production process. If the firm does hire an additional employee, then the firm would likely its economic profit. The reason for this result is that the firm will experience

its economic profit. The reason employee.

decrease; diminishing

increase; diminishing

decrease; increasing

not change; constant

increase; increasing

A competitive firm is using its economically efficient technology and is

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

A competitive firm is using its economically efficient technology and is currently earning zero economic profits. The firm is considering hiring another employee.Assume nothing else changes in the...

Question 1 (Multiple Choice Worth 1 points) (01.01 MC) Why might salt be a resource with a high cost in one market and a very low cost in another market? Trade could affect costs. Its supply could be...

A production possibility curve would ________ if the availability of an input decreased and would ________ if a lack of technology decreased production efficiency. (1 point) shift outward; shift...

hello, need help with a accounting quiz I have attached: 1) quiz 2)pdf files CH. 18- CH 21 Chapter 18 \"Managerial Accounting Concepts/Job Costing\" from Accounting Principles: A Business...

Who is likely to be in favor of a price ceiling on a good? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a All consumers of that good The...

PLEASE HELP!!! I NEED HELP. THANK YOU GOOD SOULS. Homer and Marge own 80% of a Jimmy Johns franchise. Bart is their operating partner and owns the remaining 20% of the company. Bart is charged with...

Consider two bonds (i) 3 year bond with zero coupons, and (ii) 3 year bond with 5% annual coupon. Assume the yield curve is flat at 5.5%. (a) Calculate the price and modified duration of each bond....

HI PLEASE ANSWER ALL 1. Assume the market for apples is initially in equilibrium. Which of the following will result in a higher equilibrium price of apples? a. An increase in both the demand for and...

Question 5 (1 point) At the farmer's market in Irvine, California, the price of avocados is set at $3 each. At that price, 120 avocados are supplied but only 100 are purchased. Represent this on a...

Board CHAPTER 1 Economics: Foundations and Models n this book, we use economics to answer questions such as the following What determines the prices of goods and services from bottled water to smart...

10 44. Write as a sum, difference and/or multiple of logarithms: log 5 ab?

How would your answer for part (b) in Problem 9 change if the relationship of the price sensitivity of futures con-tracts to the price sensitivity of underlying bonds were [Rf/(1 + Rf)/R/(1 + R)] =...

What is the model caled that determines the marbet vilue of a slock based on lis next anrual dividend, the dividend growth rate, and the applicable disceunt rete? Minple ONaice Maximal growth mopdel...

last two options for the multiple choice are : performance management development A construction equipment manufacturer, Roswell Corporation, is focusing on becoming a leader in sustainability in...

Write a sentence that repeats key words to emphasize that communication technology helps create a global society.

Use length. You want to help students at a local high school understand the importance of performing well on their upcoming ACT test for college admission. Express this idea in a sentence giving...

Write a sentence that uses location to emphasize the importance of effective interpersonal relationships to job success.