In a Competitive Labor Market a Firm Will Continue to Employ

question 177

True/False

In a competitive labor market a firm will continue to employ workers for as long as an additional worker's marginal revenue product is below the wage rate.

---

Definitions:

Arbitrage

Practice of buying at a low price at one location and selling at a higher price in another.

Convertible Bond

A type of bond that can be converted by the holder into a specified number of shares of the issuing company's stock at certain times during its life, usually at the discretion of the bondholder.

Acme Corporation

A fictional company often used as a generic placeholder in examples and discussions to represent any typical, large-scale business entity.

Ketone Bodies

Water-soluble molecules produced by the liver from fatty acids during periods of low food intake, carbohydrate restrictive diets, fasting, or prolonged intense exercise.