A Monopolist Is Currently Hiring 5,000 Units of Labor

question 74

Multiple Choice

A monopolist is currently hiring 5,000 units of labor.At this level,the marginal revenue of output is $10,the (fixed) wage rate is $300,and the marginal product of labor is 50.In order to maximize profit,the firm should

• A)keep the level of employment the same because the firm is earning a profit of $100,000.
• B)hire more labor because the next unit of labor increases profit by $500.
• C)hire more labor because the next unit of labor increases profit by $200.
• D)hire less labor because the last unit of labor added more to total cost ($300)than to total revenue ($10).

Identify characteristics of Type A and Type B personalities and how these traits influence stress and health.

Understand the concepts of role overload and underload as stressors in the workplace.

Recognize the signs of workplace incivility and its impact on employees’ well-being and job satisfaction.

Identify physiological, psychological, and behavioral effects of stress.

---

Definitions:

Overhead

General business expenses not directly attributed to creating a product or service.

Incremental Revenue

The additional revenue generated from a specific action or decision, beyond what would have been generated without it.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as materials and labor.

Fixed Cost

A fixed cost is an expense that does not change with the level of goods or services produced by a business, such as lease payments or insurance premiums.