A Profit-Maximizing, Competitive Firm Will Always Hire an Additional Worker

question 350

Multiple Choice

A profit-maximizing, competitive firm will always hire an additional worker when the additional worker makes a positive contribution to

• A)total revenue.
• B)total profit.
• C)the value of the marginal product of labor.
• D)marginal revenue.

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Definitions:

Equilibrium Price

The price at which the quantity of goods supplied matches the quantity of goods demanded in the market.

Tooth Decay

The destruction of tooth enamel leading to cavities, influenced by factors like bacteria, sugary diets, and poor dental hygiene.

Consumer Surplus

Consumer surplus is the difference between what consumers are willing to pay for a good or service and what they actually pay, representing a measure of consumer benefit.

Producer Surplus

The additional income producers receive when they sell a product for more than the minimum they would have been willing to sell it for.