The Firm Will Hire Current Labour Until

question 13

Multiple Choice

The firm will hire current labour until

• A) profits are maximized.
• B) total factor productivity is maximized.
• C) the marginal product of labour equals total employment.
• D) the marginal product of labour equals the wage rate.
• E) the marginal product of labour is less than the real interest rate.

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Definitions:

Cognitive Needs

The mental requirements or necessities for knowledge, understanding, curiosity, and search for meaning, often associated with Maslow's hierarchy of needs.

Maslow

Refers to Abraham Maslow, an American psychologist best known for creating Maslow's hierarchy of needs, a theory in psychology concerning human motivation based on fulfilling a series of needs from basic to self-actualization.

Consciousness

The state of being aware of and able to think about one's environment, thoughts, feelings, and sensations.

Psychosocial Development

A theory proposed by Erik Erikson that describes the impact of social experience across the whole lifespan.