Solved

If the Price of Widgets Is $2 and the Real

Question 34

Multiple Choice

If the price of widgets is $2 and the real wage is $20 per hour then the firm must sell 10 widgets to cover the cost of an hour of labour. If the price of widgets rises to $4, how many widgets must the firms sell to cover the cost of an hour of labour?


A) 15
B) 5
C) 12
D) 10
E) 20

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q29: If the aggregate demand curve and the

Q30: An economy is at a full-employment equilibrium,

Q31: When the quantity of real GDP demanded

Q32: If the price level falls and the

Q33: The line showing potential GDP is a

Q35: Over the business cycle, factors such as

Q36: According to the AS-AD model,<br>A) the AS

Q37: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8401/.jpg" alt=" -The aggregate demand

Q38: A rise in the price level<br>A) decreases

Q39: A technological advance _ aggregate supply, shifting