A Firm Has Hired the Profit-Maximizing Number of Workers When

question 37

Multiple Choice

A firm has hired the profit-maximizing number of workers when the wage is:

• A)less than the price of the product.
• B)greater than the average product of the last worker hired.
• C)equal to the average product of the last worker hired.
• D)equal to the value of the marginal product of labor of the last worker hired.

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Definitions:

Qualified Dividends

Dividend payments received from shares of stock held for a certain period of time which are taxed at the lower capital gains tax rate rather than ordinary income tax rates.

Taxable Income

The portion of an individual's or entity's income subject to taxation after all deductions and exemptions.

Taxable Income

The portion of income that is subject to tax, after accounting for deductions and exemptions.

Taxpayer

An individual or entity that is required by law to pay taxes to a federal, state, or local government.