A Firm Should Hire an Additional Worker as Long as the Wage

question 78

Multiple Choice

A firm should hire an additional worker as long as the wage rate is

• A)Greater than the MRP.
• B)Greater than the MPP.
• C)Less than or equal to the MRP.
• D)Less than the MPP.

---

Definitions:

Budget Line

A graphical depiction of all possible combinations of two goods that can be purchased with a fixed amount of income, given their prices.

Indifference Map

A graphical representation in microeconomic theory of a consumer's preferences, showing different combinations of goods among which the consumer is indifferent.

Total Utility

The complete pleasure or advantage an individual obtains from the consumption of a specific amount of products or services.

Budget Line

A graphical representation of all possible combinations of two goods that an individual can afford, given their income and the prices of the goods.