If a Competitive Firm Hires Workers to a Point Where

question 51

Multiple Choice

If a competitive firm hires workers to a point where the wage exceeds the MVP_L:

• A)reducing the level of employment will increase profits.
• B)the wage rate needs to be increased to maximize profits.
• C)the total cost must be greater than total revenue.
• D)the firm is maximizing its profits.

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Definitions:

Coercive

A form of power or influence that involves forcing someone to do something through threats or pressure.

Reward

Something given in recognition of service, effort, or achievement.

Expert

An individual with extensive knowledge or skill in a particular area or field.

Legitimate

Something that is lawful, rightful, and in accordance with established rules, often used to describe power or authority.