If the Wage Rate Is Greater Than the Marginal Revenue

question 19

Multiple Choice

If the wage rate is greater than the marginal revenue product of labor, the firm should ________ to maximize profits.

• A) hire less labor and produce less output
• B) hire less labor and produce more output
• C) hire more labor and produce less output
• D) hire more labor and produce more output

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Definitions:

Substantia Nigra

A part of the brain involved in the control of movement and is associated with diseases such as Parkinson's due to its role in dopamine production.

Dopamine

A neurotransmitter in the brain that plays an important role in positive emotions and response to reward.

Norepinephrine

An important neurotransmitter in the brain that is associated with responses to stress; also called noradrenaline.

Dendrites

Branch-like structures of neurons that receive messages from other neurons.