The Optimal Number of Workers for a Perfectly Competitive Firm

question 71

Multiple Choice

The optimal number of workers for a perfectly competitive firm to hire occurs when

• A)total labor costs equal total revenues.
• B)diminishing marginal productivity is first experienced.
• C)the wage rate equals the marginal product of the last worker.
• D)the wage rate equals the value of marginal product of the last worker.

Understand how net wealth influences consumption and saving.

Discern the movement along and shifts in the consumption function due to changes in disposable income.

Recognize the influences of market interest rates on investment decisions.

Understand the factors contributing to fluctuations in investment and its impact on GDP.