Suppose Output of a Firm Hiring Workers in a Competitive

question 88

True/False

Suppose output of a firm hiring workers in a competitive labor market increases by three units when an additional worker is hired.This firm will hire more laborers if the market price of its product is $4 and the wage rate is $9.[Hint: Marginal revenue product of a resource is equal to the product of marginal product of the resource and the marginal revenue of the firm.]

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Definitions:

Capabilities

The potential skills, abilities, and resources an individual or entity can mobilize to achieve specific goals.

Sociological Perspective

is the viewpoint that social contexts and structures profoundly influence individuals' behaviors, attitudes, and opportunities.

Culture

The shared beliefs, values, norms, practices, languages, and symbols of a society that shape its members' behaviors and perceptions.

Rationalization

The process of making activities or tasks more efficient and logical, often through the implementation of rules and procedures.