If Skilled Labor Costs Three Times as Much as Unskilled

question 45

Multiple Choice

If skilled labor costs three times as much as unskilled labor, a profit-maximizing firm will vary the quantity of each type of labor used until the

• A) amount of unskilled labor used is three times the quantity of skilled labor used.
• B) amount of unskilled labor used is one-third the quantity of skilled labor used.
• C) marginal product of skilled labor is one-third that of unskilled labor.
• D) marginal product of skilled labor is three times as great as that of unskilled labor.

---

Definitions:

Social Recognition Platforms

Online platforms that enable organizations to recognize and reward employees' contributions publicly, fostering a culture of appreciation and motivation.

Reinforcement

In psychology, a consequence applied that will strengthen an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.

Pay-For-Performance Program

A compensation strategy where employees' pay is directly tied to their performance or achievements at work.

Positive Reinforcement

Positive reinforcement involves the addition of a rewarding stimulus following a desired behavior, aiming to increase the likelihood of that behavior being repeated.