If a Firm Finds That the Wage Rate (W) Is

question 364

Multiple Choice

If a firm finds that the wage rate (W) is less than the value of marginal product (VMP) , then to maximize its profit the firm should hire

• A) less labor, which will increase the VMP.
• B) more labor, which will decrease the VMP.
• C) no more or less labor, because profits are greatest when W < VMP.
• D) more labor, because hiring more labor will increase both W and VMP until they are equal.

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Definitions:

Disciplined

Exhibiting self-control and behavior in accordance with rules or standards, often to achieve long-term goals.

Feared Self

An aspect of self-concept involving the representation of the person one is afraid of becoming, often including traits or characteristics viewed negatively.

Societal Norm

Implicit or explicit rules that are accepted and enforced by a community or society, guiding individual behavior and promoting social cohesion.

Gender Identity

An individual's personal sense of their own gender, which may or may not correspond with the sex they were assigned at birth.