If a Firm Finds Itself at the Point Where the Value

question 128

Multiple Choice

If a firm finds itself at the point where the value of marginal product of labor is greater than its wage rate,then the firm

• A) stops hiring more workers but does not fire any because the firm is maximizing its profit.
• B) decreases the number of workers it has hired in order to increase its profit.
• C) increases the number of workers it hires in order to increase its profit.
• D) increases sales to keep its employees busy.
• E) changes its employment of workers and maximizes its profit by hiring the number of workers that makes the difference between the value of the marginal product and the wage rate as large as possible.

Grasp the importance of data accuracy and processes for ensuring data quality.

Understand and describe the basics of behavior modification and its criticisms.

Comprehend the fundamentals of expectancy theory by Victor Vroom and its revisions.

Explain Herzberg's two-factor theory, focusing on hygiene factors and their impact.

---

Definitions:

Cost Flow Assumption

An accounting assumption used to value and manage inventory by determining the cost of goods sold and ending inventory.

Specific Identification

A method of inventory costing where each item in inventory is uniquely identified, allowing for the precise tracking of cost of goods sold and inventory levels.

Cost Flow

The manner in which costs move through a company's inventory accounts to eventually become cost of goods sold.

FIFO

An inventory valuation method which assumes that the first goods purchased or produced are also the first ones sold, also known as "First In, First Out."