A Perfectly Competitive Firm Should Hire an Additional Worker Only

question 58

Multiple Choice

A perfectly competitive firm should hire an additional worker only if:

• A)total revenue is less than total cost.
• B)the worker's marginal revenue product is less than the wage rate.
• C)the worker's marginal product falls.
• D)the worker's marginal product rises.
• E)the worker's marginal revenue product exceeds the wage rate.

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Definitions:

Interstate Commerce

Trade, traffic, or transportation involving the exchange of goods, services, or persons between states.

Declaration of Independence

A fundamental document that declared the thirteen American colonies independent from British rule in 1776.

Taxing Without Representation

The principle against imposing taxes on people without their consent through an elected representative, famously summarized as "no taxation without representation."

King George III

The monarch of Great Britain and Ireland during the latter half of the 18th century, whose reign was marked by a series of military conflicts including the American Revolutionary War.