To Maximize Profits, a Firm Will Employ Workers Up to the Point

question 220

Multiple Choice

To maximize profits, a firm will employ workers up to the point at which for the last worker employed:

• A)marginal product is equal to the nominal wage rate.
• B)the value of the marginal product is equal to the wage rate.
• C)the value of the marginal product is equal to the price per unit of output.
• D)the value of the marginal product is as high as possible.

Calculate the expected average rate of return for given investment proposals.

Understand the significance of present value in analyzing capital investment proposals and distinguish between methods that consider and ignore present value.

Grasp the concept of cash payback period and its relevance in investment decisions.

Recognize the role of management in planning, evaluating, and controlling long-term investments involving fixed assets.