A Profit-Maximizing,competitive Firm Will Hire an Additional Worker When the Additional

question 163

Multiple Choice

A profit-maximizing,competitive firm will hire an additional worker when the additional worker makes a positive contribution to which of the following

• A)total revenue
• B)total profit
• C)the value of the marginal product of labour
• D)marginal revenue

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Definitions:

Net Income

The total profit or loss of a business after all expenses, taxes, and costs have been subtracted from total revenues.

Initial Project Expenditures

The initial costs incurred when starting a project, often including materials, labor, and other expenses.

Worst-case Scenario

The most adverse, negative outcome that could possibly occur in a situation, often used in risk assessment and planning.

Variable Costs

Costs that change in proportion to the level of production or sales. They increase as production increases and decrease as production decreases.