In the Short Run, a Profit Maximizing Firm Will Respond

question 9

Multiple Choice

In the short run, a profit maximizing firm will respond to a reduction in the wage rate by

• A)hiring more labor.
• B)hiring more capital.
• C)hiring less labor.
• D)decreasing output.

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Definitions:

Obligation

A duty or commitment that an individual is bound to, either legally, morally, or emotionally.

Group Norms

Shared guidelines or rules of behavior that are accepted and followed by members of a group, influencing how they act and interact.

Temperaments

Physiological dispositions to respond to the environment in certain ways; they are present in infancy and in many nonhuman species and are assumed to be innate.

Personalities

The combination of characteristics or qualities that form an individual's distinctive character.