A Profit-Maximizing Firm Will Base Its Decision to Hire Additional

question 29

Multiple Choice

A profit-maximizing firm will base its decision to hire additional labor on the marginal decision rule: If the extra output that is produced by hiring one more unit of labor adds more to _______ than to _______ , the firm will increase its profit by increasing the use of labor.

• A) total cost; total revenue
• B) total revenue; total cost
• C) marginal cost; marginal revenue
• D) marginal revenue; marginal cost

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Definitions:

Fon People

An ethnic group primarily found in Benin, known for their rich cultural heritage, including the Vodun religion, which influenced the development of Voodoo in the Americas.

Commissioned

Refers to the act of formally requesting or hiring someone to create a specific piece of work, often relating to art or architecture.

Dogon Mask

Traditional African masks crafted by the Dogon people of Mali, used in ceremonial dances and embodying significant cultural and religious symbols.

Satimbe

“Sister on the head.” A Dogon (Mali) mask representing all women.