If a Firm Finds That, at Its Current Level of Employment

question 336

Multiple Choice

If a firm finds that, at its current level of employment, VMP > W, it will

• A) be maximizing profits.
• B) be minimizing profits.
• C) increase the amount of labor it hires.
• D) decrease the amount of labor it hires.

---

Definitions:

Arbitration Clause

A provision in a contract that requires disputes between the parties to be resolved through arbitration rather than through litigation in court.

Expropriation

The seizure by a government of privately owned business or personal property for a proper public purpose and with just compensation.

National Interests

The strategic, economic, and political goals or priorities of a nation considered important for its welfare and security.

International Contract

An agreement between parties located in different countries, often involving the exchange of goods or services across borders.