A Consultant Interviews the Hiring Manager of a Small, Profit-Maximizing

question 348

Multiple Choice

A consultant interviews the hiring manager of a small, profit-maximizing firm. The manager explains that the firm used to have 15 employees but decided not to rehire when the most-recently-hired employee left the company, so the firm now has 14 employees. We can infer that

• A)for the 15th employee, the wage exceeded the value of the marginal product of labor.
• B)for the 15th employee, the value of the marginal product of labor exceeded the wage.
• C)the firm is too small and should rehire to replace the 15th employee.
• D)the firm is no longer attempting to maximize profits.

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Definitions:

Plasticizer

A substance added to a material to increase its flexibility or fluidity.

Crystallinity

A measure of the degree to which a material has a well-ordered, repeating atomic structure.

Ordered Rankings

A method of arranging data points or items based on their value or importance in an ascending or descending sequence.

Interval Data

A type of numerical data that has meaningful intervals between measurements but no true zero point, allowing for comparison and subtraction.