Firms Will Employ an Input Up to the Point Where

question 117

Multiple Choice

Firms will employ an input up to the point where

• A) the wage rate equals the productivity of capital.
• B) its marginal cost equals its marginal product.
• C) the input's price equals its marginal revenue product.
• D) the input's price equals its marginal product.

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Definitions:

Pay Surveys

Are surveys of compensation paid to employees by other employers in a particular geographic area, industry, or occupational group.

Internal Equity

The fairness with which an organization's compensation policies and practices distribute resources among its employees.

Source of Information

The origin from which data or knowledge is obtained.

Pay Compression

A situation where there is only a small difference in pay between employees regardless of their experience, skills, or seniority, often leading to dissatisfaction and motivational issues.