Assume That a Restaurant Is Hiring Labor in an Amount

question 129

Multiple Choice

Assume that a restaurant is hiring labor in an amount such that the MRC of the last worker is $16 and her MRP is $12. On the basis of this information, we can say that

• A) profits will be increased by hiring additional workers.
• B) profits will be increased by hiring fewer workers.
• C) marginal revenue product must exceed average revenue product.
• D) the restaurant is maximizing profits.

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Definitions:

Eukaryotic Cells

Cells that contain a nucleus and other organelles enclosed within membranes, distinguishing them from prokaryotic cells.

Prokaryotic Cells

Simple, unicellular organisms lacking a nucleus and other membrane-bound organelles, which include bacteria and archaea.

Glycocalyx

A coating on the outside of an animal cell, formed by the polysaccharide portions of glycoproteins and glycolipids associated with the plasma membrane

Cell Wall

A rigid structure that surrounds the cell membrane in plants, fungi, and certain bacteria, providing structural support and protection.