Which of the Following Expresses the Correct Decision-Making Rule for a Profit-Maximizing

question 11

Multiple Choice

Which of the following expresses the correct decision-making rule for a profit-maximizing firm hiring units of labor?

• A) If the MRP was rising, less labor would be employed as time passed.
• B) The firm should continue to hire workers as long as their MRP is greater than the wage rate.
• C) The firm should continue to hire workers until the total costs of all workers equals the total revenue from the output of the workers.
• D) The firm should continue to hire workers until the wage rate equals the price of the product.

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Definitions:

Serotonin

A neurotransmitter involved in many functions, including mood regulation, digestion, and sleep.

Noradrenaline

Noradrenaline, also known as norepinephrine, is a neurotransmitter and hormone involved in the body's fight or flight response, regulating heart rate, blood pressure, and blood sugar.

Anhedonia

A condition characterized by the reduced ability to experience pleasure from activities usually found enjoyable, often associated with depression.

Reward System

A group of neural structures responsible for pleasure, learning processes, and motivation.