Which Rule Does the United Corporation Use When Maximizing Profit

question 148

Multiple Choice

Which rule does the United Corporation use when maximizing profit?

• A) Employ all resources until the value of their marginal products is equal.
• B) If the value of the marginal product of labor exceeds the wage rate, hire fewer workers.
• C) Hire labor up to point at which the value of marginal product of labor equals the wage rate.
• D) Reduce the wage rate until it equals the marginal product of labor.
• E) Hire labor up to point at which the value of marginal product of labor equals the price of the good or service the labor produces for United Corporation.

---

Definitions:

Cash Operating Inflows

The money received from the primary business activities of a company, such as sales revenue, minus operating expenses.

Straight-Line Basis

A method of calculating depreciation or amortization by equally spreading the cost of an asset over its useful life.

Cash Flow from Operations

The cash generated by a company’s normal business operations.

Initial Investment

The initial amount of money spent to start a project or investment, often used as a baseline for calculating future returns.