If a Firm Hires Labor Such That W > VMPL,then

question 164

Multiple Choice

If a firm hires labor such that W > VMPL,then profit:

• A)is maximized.
• B)can be increased by hiring less labor.
• C)can be increased by hiring more labor.
• D)can be increased by decreasing the price of the output.

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Definitions:

Cash Equivalents

Short-term investments with original maturities of three months or less that are readily convertible to cash and whose value is unlikely to change.

Highly Liquid

Assets that can be easily converted into cash with minimal impact on their value.

Direct Method

A method of presenting the operating activities section of the statement of cash flows that reports components of cash flows from operating activities as gross receipts and gross payments.