A Firm Finds That It Must Increase Wages to Attract

question 6

Multiple Choice

A firm finds that it must increase wages to attract extra workers. The firm will hire labor up to the point where the marginal

• A) product of labor equals the wage rate.
• B) revenue product of labor is greater than the wage rate.
• C) revenue product of labor starts to decline.
• D) revenue product equals the additional cost of hiring an extra worker.

---

Definitions:

Self-Efficacy Standards

Beliefs an individual holds regarding their own ability to successfully perform and achieve tasks.

Conditions of Worth

Standards imposed by others that one feels they must meet to be valued and loved, a concept in Carl Rogers' person-centered therapy.

Descriptive

Pertaining to the detailing or explanation of characteristics.

Experimental

Pertaining to a method of research in which variables are manipulated to observe their effects on other variables, typically within a controlled environment.