Floor Lamp Inc

question 176

Multiple Choice

Floor Lamp Inc.is a perfectly competitive firm that currently employs 100 workers.The marginal revenue product of the 90th worker is $7.00 per hour.The wage rate is $8.00 per hour.To increase profits,this firm should

• A) increase employment until the MRP of labor equals $8.00.
• B) continue hiring 100 workers because the firm earns a surplus of $1.00 on each worker hired.
• C) decrease employment until the MRP of labor equals $8.00.
• D) increase the price of lamps so that the marginal revenue product increases to $8.00 per hour.

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Definitions:

Intense Pleasure

A high degree of satisfaction or enjoyment, often derived from activities that stimulate the brain's reward centers.

Addicted Drug Users

Individuals who are unable to control their drug use, leading to severe personal and social consequences.

Conditioned Stimulus

An initially neutral signal that, following frequent association with an unconditioned stimulus, triggers a learned reaction.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally triggers a response without the need for prior learning.