In a Purely Competitive Labor Market, a Profit-Maximizing Firm Will

question 44

Multiple Choice

In a purely competitive labor market, a profit-maximizing firm will hire labor up to the point where the marginal revenue product of labor equals the

• A) wage rate or price of labor.
• B) price of the product.
• C) marginal cost of one extra unit of output.
• D) average cost of each unit of output.

---

Definitions:

Thanatos

According to the Freudian view, the basic death instinct that functions in opposition to the life instinct.

Psychodynamic

An approach in psychology which emphasizes systematic study of the psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experience.

Sociocultural

Relating to the combined influence of social and cultural factors on an individual's behavior and development.

Freudian View

is a perspective based on the theories of Sigmund Freud, which emphasizes the role of unconscious processes in shaping behavior, thoughts, and emotions.