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Labor Is a Firm's Only Variable Input

question 109

True/False

Labor is a firm's only variable input. The firm should hire additional units of labor as long as the wage is less than or equal to the marginal revenue product of that additional unit of labor.


Definitions:

Two-Factor Theory

A psychological theory proposing that employee satisfaction and dissatisfaction are influenced by two independent sets of factors: motivators and hygiene factors.

Job Content

The specific duties, responsibilities, and tasks associated with a particular job or position.

Personal Growth

An individual's ongoing process of understanding and developing oneself in order to achieve one's fullest potential.

Maslow's Needs Hierarchy

A psychological theory proposing that human needs are arranged in a hierarchy from most basic and necessary for survival to higher needs for fulfillment and self-actualization.

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