If the Marginal Product of Labor Is Always Positive, the Total

question 104

Multiple Choice

If the marginal product of labor is always positive, the total revenue will grow with each additional worker. Firms do not continuously hire new workers because:

• A) there isn't enough room in the factory.
• B) there isn't an infinite number of workers.
• C) wages would have to increase.
• D) they stop when MRP = wage

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Definitions:

Line Judgments

The activity of assessing or making decisions about the length, width, or appearance of different lines, often used in psychological research to understand perception and conformity.

Persuasive Communication

The process aimed at changing a person's or group's attitude or behavior toward some event, idea, object, or other person(s), using written, spoken words or visual tools.

Vested Interests

The specific benefits or stakes individuals or groups have in a particular outcome, often motivating their actions or opinions.

Stereotyping

Oversimplified generalizations about groups of people that may or may not reflect reality, often resulting in prejudiced attitudes or discriminatory actions.