47. The productivity of labor in a firm has decreased due to the recent retirement of many of the firm's most skilled workers. Assuming that the firm is a profit maximizer in a perfectly competitive situation, the firm will I. increase the average wage. II. decrease the average wage. III. reduce the number of worker-hours it hires. IV. hire additional labor. V. increase the number of worker-hours it hires. Statement I only Statement IV only Statements I and V only Statements II and III only OStatement V only

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Chapter18: The Markets For The Factor Of Production
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47. The productivity of labor in a firm has decreased due to the recent retirement of many of the
firm's most skilled workers. Assuming that the firm is a profit maximizer in a perfectly
competitive situation, the firm will
I. increase the average wage.
II. decrease the average wage.
III. reduce the number of worker-hours it hires.
IV. hire additional labor.
V. increase the number of worker-hours it hires.
OStatement I only
OStatement IV only
Statements I and V only
OStatements II and III only
Statement V only
Transcribed Image Text:47. The productivity of labor in a firm has decreased due to the recent retirement of many of the firm's most skilled workers. Assuming that the firm is a profit maximizer in a perfectly competitive situation, the firm will I. increase the average wage. II. decrease the average wage. III. reduce the number of worker-hours it hires. IV. hire additional labor. V. increase the number of worker-hours it hires. OStatement I only OStatement IV only Statements I and V only OStatements II and III only Statement V only
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