Suppose a Profit-Maximizing Firm Hires Labour in a Competitive Labour

question 112

Multiple Choice

Suppose a profit-maximizing firm hires labour in a competitive labour market.If the value of marginal product of labour of the last worker hired is less than the wage rate,the firm

• A)increases the wage rate.
• B)decreases the wage rate.
• C)increases the quantity of labour it hires.
• D)decreases the quantity of labour it hires.
• E)shuts down.

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Definitions:

Benefits

Advantages or positive outcomes that result from a product, service, or action.

Needs Assessment

A process to identify and evaluate needs within a group or organization to determine necessary actions or solutions.

Stimulus-response Model

A communication or behavioral theory suggesting that an external stimulus can elicit a particular response from an individual or audience.

Sales Presentation

A promotional talk or demonstration given to introduce or describe a product or service to potential buyers, aiming to persuade them to make a purchase.