A Competitive Employer Is Using Labor in Such an Amount

question 205

Multiple Choice

A competitive employer is using labor in such an amount that labor's MRP is $10 and its wage rate is $8. This firm

• A) should hire more labor because this will increase profits.
• B) should hire more labor, although this may either increase or decrease profits.
• C) is currently hiring the profit-maximizing amount of labor.
• D) is selling its product in an imperfectly competitive market.

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Definitions:

Behavioural Science

The study of human and animal behavior through observation and experimentation, seeking to understand and predict behaviors.

Organisational Effectiveness

The ability of an organization to achieve its goals and objectives efficiently and effectively, using its resources wisely.

Outcome Goals

Objectives centered on achieving a specific end result, typically involving performance standards or benchmarks.

Organisational Development

A specialized field aiming to boost the knowledge and effectiveness of individuals in achieving significant organizational change and performance improvements, by means of research, theory, and hands-on practice.