We Observe a Profit-Maximizing Firm Hiring Its 51st Employee

question 355

Multiple Choice

We observe a profit-maximizing firm hiring its 51st employee.It is possible to infer that,when 50 employees are hired,the

• A) wage exceeds the value of the marginal product of labor.
• B) value of the marginal product of labor exceeds the wage.
• C) marginal product of labor is increasing.
• D) firm is attempting to increase its market share.

---

Definitions:

Delivery Expense

Costs incurred by a company to transport its products to customers, including freight, shipping, and handling charges.

General and Administrative Expense

Expenses related to the day-to-day operations of a business that are not directly tied to production, such as salaries of executive staff, rent, and utilities.

Income Statement

The income statement is a financial report that shows a company's revenues, expenses, and net income over a specific period, illustrating its profitability.

Non-Operating Activities

Activities and financial events that fall outside the core operations of a business, such as investment income or losses, and gains or losses from the sale of assets.