Suppose a Profit-Maximizing Firm Hires Labour in a Competitive Labour

question 54

Multiple Choice

Suppose a profit-maximizing firm hires labour in a competitive labour market. If the value of marginal product of labour is greater than the wage rate, the firm should

• A)increase the wage rate.
• B)decrease the wage rate.
• C)increase the quantity of labour it hires.
• D)decrease the quantity of labour it hires.
• E)shift to a more labour-intensive production process.

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Definitions:

Minority

A definable category of people who are socially disadvantaged.

Melting Pot

The blending of new immigrants’ traditions and cultural identity into the dominant American culture.

Minority Relations

The dynamics and interactions between dominant groups and those classified as minorities within a society, often including themes of power, discrimination, and social justice.

American Concept

Ideas, beliefs, or values that are strongly associated with or originating from the United States.