If the Marginal Product of Labor Is Always Positive, the Total

question 86

Multiple Choice

If the marginal product of labor is always positive, the total revenue will grow with each additional worker. Firms do not continuously hire new workers because:

• A) there isn't enough room in the factory.
• B) there isn't an infinite number of workers.
• C) wages would have to increase.
• D) they stop when MRP = wage
• E) marginal revenue product will become negative.

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Definitions:

Looking-glass Self

A concept in sociology that suggests individuals form their sense of self based on how they believe others perceive them, as proposed by Charles Horton Cooley.

Charles Cooley

He is renowned for his contribution to the concept of the primary group, such as families and close-knit groups, which play an essential role in shaping individuals' social nature and ideals.

Sense of Self

The collection of thoughts and feelings an individual has about their own identity, including self-awareness and self-image.

Id

In psychoanalytic theory, the part of the human psyche that is the source of instinctual impulses and demands for immediate satisfaction of primitive needs.