When a Profit- Maximizing Firm Makes a Decision to Employ

question 85

Multiple Choice

When a profit- maximizing firm makes a decision to employ a worker, that decision is based on:

• A) the individual contribution the worker makes to profit.
• B) the total output produced by the firm.
• C) how much output the worker can produce.
• D) none of the above

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Definitions:

Paid in Surplus

The amount of money paid to a company by investors in exchange for stock, beyond the par value of the stock.

Par Value

The face value of a bond or stock, as determined at the time of issuance.

Reverse Stock Split

A reverse stock split is an action taken by a corporation to reduce the number of its current shares in the market, thereby increasing the share price.

Market Price

The current price at which an asset or service can be bought or sold in a competitive and open market.