Which Rule Does the United Corporation Use When Maximizing Profit

question 148

Multiple Choice

Which rule does the United Corporation use when maximizing profit?

• A) Employ all resources until the value of their marginal products is equal.
• B) If the value of the marginal product of labor exceeds the wage rate, hire fewer workers.
• C) Hire labor up to point at which the value of marginal product of labor equals the wage rate.
• D) Reduce the wage rate until it equals the marginal product of labor.
• E) Hire labor up to point at which the value of marginal product of labor equals the price of the good or service the labor produces for United Corporation.

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Definitions:

Direct Method

A way to allocate service department costs directly to production departments without any intermediate allocations.

Service Department

A segment within a business that provides services, support, or maintenance to other departments or to the business's customers.

Surgery Department

A specialized department within a hospital where surgical procedures are performed.

Computer Workstations

High-performance computers designed for technical or scientific applications, often used in professional contexts.