The Rule for Employing a Profit-Maximizing Amount of Labor Is

question 44

Multiple Choice

The rule for employing a profit-maximizing amount of labor is to continue to hire additional workers until the additional worker's value of marginal product is

• A) less than the wage rate.
• B) equal to the wage rate.
• C) greater than 1.
• D) less than the price of the product.
• E) equal to the price of the product.

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Definitions:

Constraint Equations

Mathematical expressions that specify the limitations or requirements that must be met in optimization and other mathematical problems.

Feasible Solutions

A set of solutions that meet all the constraints of a particular problem, available for consideration in decision-making processes.

Graphical Linear Programming

A method for solving linear programming problems by graphically finding the optimum point that maximizes or minimizes the objective function.

Constraints

Limitations or restrictions in a manufacturing or production process, which can affect the efficiency or outcomes.