Profit Maximization Implies That Firms Will Want to ________

question 68

Multiple Choice

Profit maximization implies that firms will want to ________.

• A)accumulate capital while the MPK is greater than the real wage
• B)accumulate capital while the MPK is greater than the rental price of capital
• C)accumulate labor while the MPK is greater than the rental price of capital
• D)accumulate labor while the MPK is greater than the real wage
• E)none of the above

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Definitions:

Ego

Part of the psyche that mediates between the conscious, the unconscious, and reality, operating based on the reality principle, according to Freudian theory.

Basic Traits

Fundamental personality characteristics that are relatively stable over time and across situations.

Personality

A unique combination of emotional, attitudinal, and behavioral response patterns of an individual, distinguishing one person from another.

Neuroticism

A personality trait characterized by sadness, moodiness, and emotional instability.