Firms Will Employ an Input Up to the Point Where

question 117

Multiple Choice

Firms will employ an input up to the point where

• A) the wage rate equals the productivity of capital.
• B) its marginal cost equals its marginal product.
• C) the input's price equals its marginal revenue product.
• D) the input's price equals its marginal product.

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Definitions:

Cohesive

Referring to the property of an element or group to stay together tightly and function in a unified manner.

Groupthink

A psychological phenomenon in which the desire for harmony or conformity within a group results in an irrational or dysfunctional decision-making outcome.

Devil's Advocate

A role assumed by an individual or group in discussions or decision-making processes to challenge ideas and assumptions by presenting a contrary argument.

Asch Conformity Studies

A series of psychological experiments that demonstrated the extent to which an individual's own opinions are influenced by those of a majority group.