The General Profit-Maximizing Rule for Employment of a Variable Input

question 38

Multiple Choice

The general profit-maximizing rule for employment of a variable input is to employ that input until its marginal revenue product is equal to the marginal cost of the input, as long as:

• A) the marginal cost of the input would be less than or at most equal to the marginal revenue product of the input for a greater quantity of the input.
• B) the marginal cost of the input would be at least equal to or above the marginal revenue product of the input for a greater quantity of the input.
• C) the marginal cost of the input would be at least equal to or below the marginal revenue product of the input for a greater quantity of the input.
• D) the marginal cost of the input would be at least equal to or above the marginal revenue product of the input for a lower quantity of the input.
• E) the marginal cost of the input would be at least equal to the marginal revenue product of the input for a greater quantity of the input.

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Definitions:

Organized Labor

Constitutes labor unions and labor organizations that aim to improve workers' conditions, wages, and rights through collective action and negotiation.

NLRA

The National Labor Relations Act, a foundational statute in United States labor law that protects the rights of employees to organize and bargain collectively.

Deregulating NLRA

The process of reducing or removing government regulations within the National Labor Relations Act, aimed at fostering more flexibility in employer-employee relations.

Collective Representation

A process by which a group acts together to promote its members' interests, often in negotiations with employers.