A Company Finds That the Value of Marginal Product for the Current

question 119

Multiple Choice

A company finds that the value of marginal product for the current level of employment is $53 and the wage rate is $75.Which of the following is correct?

• A) The firm is employing the profit-maximizing quantity of labor.
• B) Too much labor is currently employed and the firm will lay off some workers.
• C) Too few workers are currently employed and the firm will hire more workers.
• D) The firm should shut down and produce nothing.
• E) More information about the price of the product is needed to determine if the firm is hiring the profit-maximizing amount of labor.

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Definitions:

Tyrannosaurus Rex

A large carnivorous dinosaur that lived during the late Cretaceous period and is known for its massive size and powerful bite.

Locomotory Behavior

The movements and methods by which organisms move from one place to another, often in response to environmental stimuli.

Sprawling Gait

A mode of locomotion characterized by limbs that extend sideways from the body, commonly seen in reptiles and amphibians.

Hominin Evolution

The process of evolutionary change and diversification leading to the emergence of humans and their closest relatives, distinct from the lineage leading to modern apes.