When a Firm Hires Labor Up to the Point Where

question 317

Multiple Choice

When a firm hires labor up to the point where the wage is equal to the value of the marginal product of labor, it is

• A)minimizing labor costs.
• B)guaranteeing that labor costs do not exceed fixed costs.
• C)maximizing the number of workers it can hire and still experience a positive profit.
• D)maximizing profit.

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Definitions:

Breadwinners

Persons who earn the primary source of income for a household, supporting the family's financial needs.

Family

An intimate group of two or more people who (1) live together in a committed relationship, (2) care for one another and any children, and (3) share activities and close emotional ties.

Deteriorating

Experiencing a decline in quality, condition, or vitality over time.

Schools Of Thought

Various philosophies or methods of thinking within a particular field or issue.