The Production Function Is Given by F(L) =

question 49

Multiple Choice

The production function is given by F(L) = . Suppose that the cost per unit of labor is $16 and the price of output is $12. How many units of labor will the firm hire?

• A) 54
• B) 13.50
• C) 27
• D) 81
• E) None of the above.

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Definitions:

Equity Theory

A concept in social psychology that suggests individuals determine the fairness of their job outcomes by comparing themselves to others.

Piece Rate

A compensation system where employees are paid based on the quantity of units they produce or tasks they complete, encouraging productivity but potentially impacting job satisfaction and quality.

Specific High Learning Goal

A clearly defined objective aimed at achieving a significant level of knowledge or skill in a particular area.

Goal Setting

The process of establishing specific, measurable, achievable, relevant, and time-bound objectives.