The Best Number of Workers for Any Employer to Hire

question 58

Multiple Choice

The best number of workers for any employer to hire is that quantity in which:

• A) the marginal revenue product equals the marginal factor cost.
• B) the marginal revenue product exceeds the marginal factor cost.
• C) total costs are minimized.
• D) total revenue is maximized.

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Definitions:

Perfectly Inelastic

A demand scenario where the quantity demanded does not change regardless of price fluctuations.

Income Elasticity

A measure of how much the demand for a good changes in response to a change in consumers' income.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, in contrast to a normal good.

One-Of-A-Kind

An item or phenomenon that is unique and has no identical counterpart.