If the Firm Hires to a Point Where the Marginal

question 21

Multiple Choice

If the firm hires to a point where the marginal expense of labor is greater than the marginal revenue product of labor,then

• A) profits could be increased by increasing employment.
• B) profits could be increased by reducing employment.
• C) profits are maximized.
• D) total cost must be greater than total revenue.

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Definitions:

Dispatching Rules

Guidelines or strategies used in production and operations management to prioritize and allocate tasks or jobs to available resources or machines.

Flow Time

The total time a product takes to go through a production process, from start to finish, including both processing and waiting times.

Work Centre

A specific location in a manufacturing facility where a set of production tasks or operations are carried out.

Processing

The series of actions or steps taken in order to achieve a particular end, especially in the context of data or material transformation.