The Marginal Productivity Principle Says That a Profit-Maximizing Firm Should

question 209

Multiple Choice

The marginal productivity principle says that a profit-maximizing firm should

• A)hire capital until its marginal product is zero.
• B)hire labor until another worker costs more to hire than she can earn for the firm.
• C)hire the quantities of capital and of labor at which their marginal products are equal.
• D)hire capital until its marginal product is negative.

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Definitions:

Baumrind

A psychologist known for her research on parenting styles, identifying three major approaches: authoritative, authoritarian, and permissive.

Lenient

Exhibiting tolerance or a mild disposition in enforcing strict rules or punishments.

Helicopter Parents

Parents who take an overly protective or excessively interested approach in managing their children's lives, often intruding in matters of education and personal growth.

Compadrazgo

The relationship established between parents and godparents as a form of coparenting.