Which of the Following Is FALSE Regarding the General Rule

question 105

Multiple Choice

Which of the following is FALSE regarding the general rule for hiring?

• A) Virtually every optimizing rule in economics involves comparing marginal benefits with marginal cost.
• B) The benefit from added workers is extra output and consequently more revenues.
• C) The firm hires workers up to the point at which the additional cost associated with hiring the last worker is equal to the additional revenue generated by that worker.
• D) If any firm hired fewer workers over time, profits would definitely increase at that firm.

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