If the Value of the Marginal Product of Labor Is

question 384

Multiple Choice

If the value of the marginal product of labor is less than the wage, then the firm could

• A)increase profit by hiring additional labor.
• B)increase profit by reducing the amount of labor hired.
• C)increase revenue by lowering output.
• D)reduce total cost by hiring additional workers.

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Definitions:

Low-ball Technique

A persuasion and sales strategy where an initial, lower price is offered to gain agreement from a buyer, only to increase the price by introducing additional costs or factors.

Social Loafing

A phenomenon observed in group settings wherein individuals put in less effort on a task when working collectively compared to when working individually.

Social Loafing

The phenomenon where individuals exert less effort when working in a group than when working alone.

Philip Zimbardo

An American psychologist known for his research on social influence and the dynamics of time perspective, notably leading the Stanford prison experiment.