Answer the next two questions using the information in
the table below.
If the firm maximizes profits, it should
first worker, but not the second.
second worker, but not the third.
third worker, but not the fourth.
fourth worker, but not the fifth.
The firm was hiring workers using the
above table, and had found the solution that maximized
profits. Now assume that a minimum wage is introduced at
a level of $1.75. The firm would:
hire fewer workers but pay more.
hire more workers and pay more.
hire fewer workers and pay less..
hire more workers and pay less.
make no changes.