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

question 81

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 the most-recently-hired employee has just left the company. The firm is currently advertising to hire a worker to replace the employee who just left at the same wage rate. 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 large and should remain at 14 employees.
• D)the firm is no longer attempting to maximize profits.

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Definitions:

Purging Behavior

Actions undertaken to rid the body of consumed food or substances, often associated with eating disorders such as bulimia nervosa.

Laxative

A substance used to stimulate bowel movements, often used to treat constipation.

Bulimia Nervosa

An eating disorder marked by binge eating followed by methods to avoid weight gain, such as self-induced vomiting.

Binge Eating Disorder

An eating disorder marked by periods of uncontrolled, excessive eating, followed by feelings of shame or guilt.