An Employer Would Never Operate on the Upward-Sloping Part of an MRP

question 191

Multiple Choice

An employer would never operate on the upward-sloping part of an MRP curve because

• A)he or she would not be maximizing profits.
• B)he or she would be hiring workers at wages above MRP.
• C)the number of workers is too large to get economies of scale.
• D)he or she would then have too little capital per worker.

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Definitions:

Compliance

The act of conforming, submitting, or adapting one's actions to another's wishes, rules, or regulations.

Referent Group

A group to which an individual or another group is compared, often for the purpose of evaluating and understanding one's own attitudes, values, and behaviors.

In-Group

A group in society with which an individual psychologically feels a sense of belonging.

Out-Group

A social group towards which a person feels a sense of competition or opposition.