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

question 109

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 the MRP.

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Definitions:

Total Utility

The overall satisfaction or benefit that a consumer derives from consuming a certain quantity of goods or services.

Preferences

The subjective tastes and desires of consumers that influence their choices among various goods and services.

Apples

In economic and financial contexts, this term is often used metaphorically to represent the comparison of similar items or investments, as in "comparing apples to apples."

Oranges

A citrus fruit characterized by a round shape and a sweet, juicy pulp, commonly consumed fresh or used in beverages.