If, for a Firm in a Competitive Labour Market, the Value

question 123

Multiple Choice

If, for a firm in a competitive labour market, the value of marginal product of the last worker hired is $24 and the wage rate is $25 then

• A) the firm has hired the profit- maximising number of workers.
• B) the firm is earning $1 of profit from this worker.
• C) more workers should be hired.
• D) the worker should be fired.

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Definitions:

Invoice Price

The original price of goods or services listed on an invoice, before any discounts or adjustments are applied.

Periodic Inventory System

An inventory accounting system where the inventory balance is updated at specific intervals, requiring physical inventory counts.

Perpetual Inventory System

An inventory management system where records of inventory are updated in real-time or near real-time with every sale or purchase.

Cost Of Goods Sold

An expense reported on the income statement, representing the total cost of products sold, including the cost of materials and labor.