A Firm Will Employ an Additional Unit of Labor as Long

question 201

Multiple Choice

A firm will employ an additional unit of labor as long as the employment of labor adds more to the firm's revenue than it does to the firm's:

• A) product price.
• B) accounting profit.
• C) residual claim.
• D) cost.

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Definitions:

Thickness

The measure of the dimension from one surface of an object to the opposite surface.

Deformed

Having an irregular or distorted shape or structure, often due to genetic factors, environmental conditions, or injury.

Broader

A term indicating a wider scope or more inclusive range of considerations or elements.

Smaller

Having lesser size, quantity, or magnitude compared to something else.