To Maximize Profit,a Firm Hires Labour Until

question 92

Multiple Choice

To maximize profit,a firm hires labour until

• A)there is no more labour available at the market wage rate.
• B)they can sell that labour for no more than what they paid for it.
• C)the wage rate paid to the labour equals the marginal cost of production.
• D)the additional benefit of hiring the labour is equal to the additional revenue the labour generates.
• E)the value of marginal product equals the wage rate.

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Definitions:

Monthly Sales

The total revenue generated from goods sold or services rendered by a company during a one-month period.

Security for a Loan

Collateral or assets pledged by a borrower to secure a loan, providing a lender assurance of repayment.

Blanket Liens

A security interest covering nearly all types of collateral owned by the debtor.

Compensating Balance

A minimum balance that must be maintained in a bank account, often required by banks in return for loans or as a condition for obtaining certain services.