Suppose a Profit-Maximizing Firm Hires Labour in a Competitive Labour

question 54

Multiple Choice

Suppose a profit-maximizing firm hires labour in a competitive labour market. If the value of marginal product of labour is greater than the wage rate, the firm should

• A)increase the wage rate.
• B)decrease the wage rate.
• C)increase the quantity of labour it hires.
• D)decrease the quantity of labour it hires.
• E)shift to a more labour-intensive production process.

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Definitions:

Nursing Diagnosis

A clinical judgment about individual, family, or community responses to actual or potential health problems/life processes, as identified by a nurse.

Blood Pressure

The force of circulating blood against the walls of blood vessels, measured as systolic and diastolic pressure and vital for diagnosing cardiovascular health.

Pulse Oximetry

A noninvasive method for monitoring a person's oxygen saturation in the blood.

Respirations

The act or process of inhaling and exhaling air in order to exchange oxygen for carbon dioxide in the body's cells.