Assume That a Restaurant Is Hiring Labor in an Amount

question 132

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:

Advertising Burnout

A situation where consumers become indifferent to advertising messages after being exposed to excessive amounts of advertising.

Sleeping Effect

A phenomenon where the persuasiveness of a message increases with time after it has been initially discounted or forgotten.

CS Decreasing

A process where customer satisfaction levels decline over time due to various factors such as poor service quality or unmet expectations.

Cognitive Learning

A style of learning that emphasizes understanding, organizing, and applying information logically and systematically.