Given That the Market Wage Rate Is $50 and Both

question 18

Multiple Choice

Given that the market wage rate is $50 and both the labor and the goods market are perfectly competitive,a profit-maximizing firm should hire an additional worker if ________.

• A) the marginal product of the worker is 50 units
• B) the value of the marginal product of the worker is at least $50
• C) the marginal product of the worker is less than 50 units
• D) the value of the marginal product of the worker is less than $50

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Definitions:

Adjusted Gross Income

is an individual's total gross income minus specific deductions, used to determine tax liability.

Schedule A

A form used for itemizing deductions on a U.S. individual income tax return, including taxes paid, interest, gifts to charity, and other deductible expenses.

Property Tax

A rephrased definition: A levy on property that the owner is required to pay, usually collected by local governments, based on the property's value.

Sales Tax

A tax imposed by a government on the sale of goods and services.