If the Value of the Marginal Product of Labor Exceeds

question 324

Multiple Choice

If the value of the marginal product of labor exceeds the wage, then hiring another worker increases the firm's

• A)profit.
• B)total cost.
• C)total revenue.
• D)All of the above are correct.

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Definitions:

Labour Market Demand

The total demand for workers in a particular market, as determined by employers' needs for employees to perform certain jobs.

Human Capital

The competencies, insights, and background that an individual or community has, seen from the perspective of their financial or valuable contribution to a corporation.

Soft Cost

Expenses not directly related to physical construction in projects, including legal fees, permits, and architectural services.

Turnover

The rate at which employees leave an organization and are replaced by new personnel over a certain period.