If the Wage Exceeds the Value of the Marginal Product

question 346

Multiple Choice

If the wage exceeds the value of the marginal product of labor, then hiring another worker

• A)decreases the firm's total revenue.
• B)increases the firm's profit.
• C)decreases the firm's total cost.
• D)decreases the firm's profit.

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Definitions:

Synapsids

A group of animals that includes mammals and their extinct relatives, characterized by a single temporal fenestra (an opening in the skull behind each eye).

Reptiles

Cold-blooded vertebrates characterized by scales or hard plates, such as snakes, turtles, and lizards, that reproduce mostly through eggs.

Modern-Day Mammals

Contemporary species of the mammalian class, characterized by features such as hair, three middle ear bones, and mammary glands for feeding young.

Paleontologists

Scientists who study the history of life on Earth through the examination of fossilized remains and traces of organisms.