An Employer Would Never Operate on the Upward-Sloping Part of an MRP

question 31

Multiple Choice

An employer would never operate on the upward-sloping part of an MRP curve because

• A)he would not be maximizing profits.
• B)he would be hiring workers at wages above MRP.
• C)the number of workers is too large to get economies of scale.
• D)he would then have too little capital per worker.

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Definitions:

Input

Resources used in the production process to create goods or services, including labor, raw materials, and capital.

Cost Curves

Graphs that illustrate the cost of producing various levels of output, typically including curves for average costs and marginal costs among others.

Marginal Cost

The cost added by producing one additional unit of a product or service, a critical concept in economics and decision making in business.

Average Total Cost

The total cost divided by the number of goods or services produced, indicating the average expense per unit.