A Profit-Maximizing Firm Should Hire an Input as Long as the

question 110

Multiple Choice

A profit-maximizing firm should hire an input as long as the

• A) firm can increase its total revenue.
• B) price of the input doesn't exceed the price of the other inputs used in the firm's production.
• C) marginal revenue product of the input is at least as much as the cost of hiring the input.
• D) marginal revenue product of the input is greater than the marginal revenue product of other inputs the firm is using.

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Definitions:

Collective Bargaining

The process where workers, through their unions, negotiate contracts with their employers to determine their terms of employment, including pay and working conditions.

Lockout

An action taken by employers to prevent employees from working during a labor dispute, typically to pressure the union to accept contract terms.

Collective Agreement

A written contract negotiated by a group of employees, usually through a union, concerning wages, hours, and working conditions.

Certification

Official recognition or guarantee that an individual, organization, product, or service meets established standards.