We Observe a Profit-Maximizing Firm Hiring Its 51st Employee

question 355

Multiple Choice

We observe a profit-maximizing firm hiring its 51st employee.It is possible to infer that,when 50 employees are hired,the

• A) wage exceeds the value of the marginal product of labor.
• B) value of the marginal product of labor exceeds the wage.
• C) marginal product of labor is increasing.
• D) firm is attempting to increase its market share.

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Definitions:

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without prior conditioning or learning.

Loud Noise

A sound that is strong and high in volume, which can potentially cause hearing loss or damage after prolonged exposure.

White Rat

Commonly used laboratory animals in psychological and medical research, known for their genetic uniformity and ease of handling.

Rabbit

A small mammal with long ears, a short tail, and strong hind legs, known for its speed and reproductive capabilities.