Harold owns a cranberry bog in which he grows cranberries. Harold’s farm is a competitive, profit-maximizing firm. As such, Harold much decide
(i): how many cranberries to sell.
(ii): what price to charge for his cranberries.
(iii): what wages to pay his workers.
(iv): how many workers to hire.
A. (i) only
B. (ii) and (iii) only
C. (i) and (iv) only
D. (i), (ii), (iii), and (iv)
You seem to have a severe identity problem -- posting 12 questions using several different names.
In the late 1970s, oil prices were expected to increase dramatically once controls disappeared. Regulated prices were pegged as low as $6 per barrel, while global prices had climbed to almost $30. According to the Joint Committee on Taxation, lifting the price controls would produce $1 trillion in new revenue for oil producers between 1980 and 1990. Profits were expected to rise by more than $400 billion over the same period.
The correct answer is D. (i), (ii), (iii), and (iv).
As a competitive, profit-maximizing firm, Harold must consider all aspects of his business in order to maximize his profits. Let's break down each decision he has to make:
(i) How many cranberries to sell: Harold needs to determine the quantity of cranberries he wants to sell in order to meet the demand in the market. This decision will impact his revenue and profits.
(ii) What price to charge for his cranberries: Harold needs to set a price for his cranberries that will maximize his revenue and consider factors such as the demand for cranberries, production costs, and competition in the market.
(iii) What wages to pay his workers: Harold needs to determine the wages he will pay to his workers, which will influence his labor costs. He must strike a balance between attracting and retaining skilled workers while also maintaining profitability.
(iv) How many workers to hire: Harold needs to decide the number of workers he will hire to ensure efficient production and meet the demand for his cranberries. This decision will impact his production costs and efficiency.
Considering these factors, it is evident that all four decisions listed in option D (i), (ii), (iii), and (iv) are crucial for a profit-maximizing firm like Harold's cranberry farm.