A Profit Maximizing Firm That Is a Price Taker in Both

question 32

Multiple Choice

A profit maximizing firm that is a price taker in both product and factor markets will hire a factor up to the point at which

• A)the last unit of the factor hired adds as much to costs as it does to revenues.
• B)the value of marginal product equals the wage rate.
• C)the marginal revenue product equals the wage rate.
• D)all of the above
• E)a and b

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Definitions:

Salespeople

Individuals who sell products or services to customers, often working on commissions and employing various techniques to meet sales targets.

Sales Force

A group of employees in a company responsible for selling its products or services and often the primary point of contact between the company and its customers.

Hiring

Hiring refers to the process of identifying, attracting, and selecting individuals to fill job vacancies within an organization.

Advertising and Promotion

Activities aimed at communicating the values of a product or service to potential customers to influence their buying behavior.