Which of the Following Statements Is Correct

question 96

Multiple Choice

Which of the following statements is correct?

• A)The value of the marginal product curve is the labor demand curve for competitive, profit-maximizing firms.
• B)A competitive, profit-maximizing firm hires workers up to the point where the value of the marginal product of labor equals the wage.
• C)By hiring labor up to the point where the value of the marginal product of labor equals the wage, the firm is producing where price equals marginal cost.
• D)All of the above are correct.

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Definitions:

Budgeting Technique

A budgeting technique is a method or approach used to plan and manage financial resources, forecasting income and expenditures over a set period.

Production Volume

The total quantity of goods or services produced by a company within a specific time period.

Volume-Related Measures

Metrics or indicators used to assess or track the quantity of production, sales, or services.

Allocation Basis

A criterion or method used to allocate or distribute costs among different departments, products, or activities based on certain factors or proportions.