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:

Evolving Local Market

Refers to a local market that is experiencing changes or developments due to various factors such as economic conditions, consumer preferences, or technological advancements.

Intracultural Variation

An understanding of differences within a nation and the ability to identify local preferences that are irrelevant for global companies.

Local Integration

The process where local businesses and populations adapt and incorporate into a larger economy or society, often fostering community development and cohesion.

Global Penetration

Refers to the extent to which a company or brand is recognized or has a significant presence in markets worldwide.