To Maximize Profits, Firms Hire Labor as Long as

question 47

Multiple Choice

To maximize profits, firms hire labor as long as

• A)each additional hour hired produces more additional output than the nominal wage rate.
• B)the quantity of labor supplied increases as the real wage rate increases.
• C)workers continue to supply labor to the firm.
• D)each additional hour hired produces more additional output than the real wage rate.
• E)the total hours hired produces more additional output than the real wage rate.

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Definitions:

Sympathetic

Feeling, showing, or expressing sympathy, understanding, or compassion towards others.

Somatic

Relating to or affecting the body, distinct from the mind.

Central

Pertaining to the main or most important part of something; often used in psychology to describe core processes or systems.

Parasympathetic Nervous System

A division of the autonomic nervous system responsible for conserving energy and returning the body to a restful state after stress or activity.