Suppose That in January a Profit-Maximizing Firm Has 25 Employees

question 32

Multiple Choice

Suppose that in January a profit-maximizing firm has 25 employees.By February,the firm has decreased employment.One can infer that,when 25 employees are hired,the

• A) firm is losing market share.
• B) firm is minimizing losses.
• C) wage exceeds the value of the marginal product of labor.
• D) value of the marginal product of labor exceeds the wage.

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Definitions:

Labor Unions

Labor unions are organizations that represent the collective interests of workers, negotiating wages, benefits, and working conditions on their behalf.

Agency Shop

A workplace where employees are not required to join the union, but must still pay union dues as the union negotiates on behalf of all employees.

Employment

The state of having paid work, or the relationship between an employer and an employee where work is performed for wages.

Wage Rates

The monetary compensation paid to workers per unit of time or output, often standardized by industry, skill level, or geographical location.