One Reason That Firms Hire Labour at the Point Where

question 80

Multiple Choice

One reason that firms hire labour at the point where w = MPN is

• A)if w < MPN,the cost (w)of hiring additional workers exceeds the benefits (MPN)of hiring them,so they should hire fewer workers.
• B)if w > MPN,the cost (w)of hiring additional workers is less than the benefits (MPN)of hiring them,so they should hire more workers.
• C)if w < MPN,the cost (w)of hiring additional workers equals the benefits (MPN)of hiring them,so they have the right number of workers.
• D)if w > MPN,the cost (w)of hiring additional workers exceeds the benefits (MPN)of hiring them,so they should hire fewer workers.

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Definitions:

Economic Policy

Actions taken by government to influence its economy through taxation, spending decisions, and fiscal management.

Multinational Corporation

A large company that operates in multiple countries around the world, beyond its home country.

Facilities

Buildings, equipment, services, and other resources provided for a specific purpose or activity.

Political Policies

Strategies and decisions made by a government or political party that guide the administration of a country and affect its citizens and economic conditions.