Competitive Firms Hire Workers Until the Additional Benefit They Receive

question 40

Multiple Choice

Competitive firms hire workers until the additional benefit they receive from the last worker hired is equal to (i)
The additional cost of that worker.
(ii)
The wage paid to that worker.
(iii)
The marginal product of that worker.

• A)(i) only
• B)(iii) only
• C)(i) and (ii) only
• D)(ii) and (iii) only

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Definitions:

Federal Income Taxes

Taxes levied by the United States federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Stockholders' Equity

The owners' residual interest in a corporation, represented by the difference between assets and liabilities on the balance sheet.

Investments

Assets purchased with the expectation that they will generate income or will appreciate in the future.

Net Income

The total revenue of a company minus the total expenses, indicating the profit earned over a specific period.