Competitive Firms Hire an Additional Worker Only If the Additional

question 114

Multiple Choice

Competitive firms hire an additional worker only if the additional profit created by the newly hired worker exceeds:

• A)the revenue collected
• B)the wage she is paid
• C)her marginal product
• D)the value of her marginal product

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Definitions:

Percentage of Net Change

The ratio or fraction, expressed as a percentage, that represents the difference between the old value and the new value divided by the old value, often used to measure growth or decline.

Comparative Income Statement

A financial statement that compares income, expenses, and net income over different periods to observe trends or changes.

Sales

Transactions involving the exchange of goods or services for money.

Acid Test Ratio

Used to determine the amount of assets that can be quickly turned into cash to pay current liabilities; acid test ratio equals total of cash plus receivables divided by total current liabilities.