A Firm Will Hire a Worker Whenever That Worker's Marginal

question 214

Multiple Choice

A firm will hire a worker whenever that worker's marginal product of labor is:

• A) greater than the marginal product of labor for the next best worker.
• B) less than the marginal product of labor for the next best worker.
• C) greater than the worker's wage.
• D) less than the worker's wage.

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Definitions:

Mutually Exclusive

A statistical term describing events that cannot occur at the same time, indicating no overlap in outcomes.

Joint Probability

The likelihood of two events happening at the same time.

Conditional Probability

The probability associated with an event under the condition that a separate event has already transpired.

P(A And B)

The probability that events A and B both occur in a probabilistic experiment.