If the Wage Rate Is Less Than the Marginal Revenue

question 116

Multiple Choice

If the wage rate is less than the marginal revenue product of labor, the firm should ________ to maximize profits.

• A) hire less labor and produce less output
• B) hire less labor and produce more output
• C) hire more labor and produce less output
• D) hire more labor and produce more output

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Definitions:

Syntax

The arrangement of words and phrases to create well-formed sentences in a language.

Linguistic Relativity

The hypothesis that the structure of a language affects its speakers' world view or cognition, and thus people's perceptions are relative to their spoken language.

Morphemes

The smallest units of language that carry meaning, which can be words themselves or parts of words, such as prefixes or suffixes.

Phonemes

The basic units of sound in a language that distinguish one word from another, for example, the difference between the p in "pat" and the b in "bat".