At What Point Should a Firm Stop Hiring Workers

question 10

Multiple Choice

At what point should a firm stop hiring workers?

• A) when the wage per worker starts to increase
• B) when the price of capital starts to decrease
• C) when the firm's marginal gain in output from hiring an additional worker is zero
• D) when the firm's marginal profit from hiring an additional worker equals the cost of hiring that worker
• E) when the firm's value of marginal product equals zero

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Definitions:

Unconscious Thoughts

Mental processes that occur without conscious awareness, including desires, motivations, and memories, as proposed by Freud.

Freud's Contribution

Refers to Sigmund Freud's significant impact on psychoanalysis, including his theories on the unconscious mind, the structure of personality (id, ego, superego), and the stages of psychosexual development.

Childhood Experiences

Refers to the events, situations, and activities that children go through during their formative years, influencing their development and personality.

Emotional Responses

Reactions characterized by feelings that occur in response to stimuli or events, varying greatly among individuals.