Assume That a Restaurant Is Hiring Labor in an Amount

question 125

Multiple Choice

Assume that a restaurant is hiring labor in an amount such that the MRC of the last worker is $16 and her MRP is $12. On the basis of this information, we can say that

• A)profits will be increased by hiring additional workers.
• B)profits will be increased by hiring fewer workers.
• C)marginal revenue product must exceed average revenue product.
• D)the restaurant is maximizing profits.

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Definitions:

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and underestimate situational factors when explaining others' behaviors.

Overemphasized

To give too much importance or emphasis to something, potentially skewing perspective or interpretation.

Ignored

The act of deliberately paying no attention or giving no recognition to someone or something.

Kind-hearted

Having a caring, compassionate, and benevolent nature or disposition towards others.