If a Firm Can Increase Output by Hiring More Workers

question 45

Multiple Choice

If a firm can increase output by hiring more workers then

• A)it will always do so.
• B)it will never do so.
• C)it will do so only if the cost of hiring the workers (and purchasing the materials)is less than the increase in revenues associated with the increase in sales.
• D)it will do so only if the cost of hiring the workers (and purchasing the materials)is more than the increase in revenues associated with the increase in sales.

---

Definitions:

Finishing Department

The final stage in the manufacturing process where products are completed, packaged, and prepared for delivery.

Direct Labor-Hour

A measure of the work time spent by employees who are directly involved in the production process.

Manufacturing Overhead

The indirect factory-related costs that are incurred when a product is manufactured.

Forming Department

A section within a manufacturing process where raw materials are shaped or formed into parts before being assembled into final products.