If a Firm Finds That, at Its Current Level of Employment

question 320

Multiple Choice

If a firm finds that, at its current level of employment, VMP < W, then it has

• A) reached maximum profits.
• B) reached minimum profits.
• C) not hired enough labor to maximize its profit.
• D) hired too much labor to maximize its profit.

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Definitions:

Necrosis

The death of cells or tissues in the body due to disease, injury, or lack of blood supply.

Root

The part of a plant that typically lies below the surface of the soil and absorbs water and nutrients.

Prefix

A group of letters added to the beginning of a word to modify its meaning.

Ad-

A prefix indicating direction towards or addition to something.