A Decrease in the Number of Workers Hired by a Firm

question 97

Multiple Choice

A decrease in the number of workers hired by a firm could result from

• A)an increase in the marginal product of labor.
• B)an increase in the marginal revenue product of labor.
• C)an increase in the real wage.
• D)a decrease in the real wage.

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Definitions:

Operating Cost

Expenses associated with the day-to-day running of a business, such as rent, utilities, and salaries.

Annual

Occurring once every year.

Absolute Value

The distance of a number from zero on the number line, without considering direction; always non-negative.