Firms Should Hire Additional Units of a Resource as Long

question 56

Multiple Choice

Firms should hire additional units of a resource as long as the:

• A) marginal product of the resource exceeds the price of the resource multiplied by the quantity of output produced.
• B) marginal product of the resource is less than the price of the resource.
• C) price of the output produced is positive.
• D) marginal revenue product of the resource exceeds the cost of an additional unit of the resource.

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Definitions:

Functional Areas

Departments or teams within a business that focus on specific functions or activities like marketing, finance, operations, or human resources, contributing to the organization's overall goals.

Democratic Leaders

Leaders who promote the participation of all members in decision-making processes, valuing collaboration and consensus.

Subordinates

Individuals who work under the supervision of someone else within an organization, typically reporting to a manager or supervisor.

Decision Making

The process of selecting a course of action from multiple alternatives to achieve a specific objective.