When a Firm Hires Labor Up to the Point Where

question 317

Multiple Choice

When a firm hires labor up to the point where the wage is equal to the value of the marginal product of labor, it is

• A)minimizing labor costs.
• B)guaranteeing that labor costs do not exceed fixed costs.
• C)maximizing the number of workers it can hire and still experience a positive profit.
• D)maximizing profit.

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Definitions:

Expectancy-Value Model

A psychological theory that explains motivation by combining individual expectations of success with the value of the success.

Probability of Success

A statistical measure that calculates the likelihood of a desired outcome or successful result happening.

Incentive Value

The attractiveness or appeal of a goal or reward that motivates behavior.

Need for Achievement

A psychological drive to excel or meet certain standards of performance.