If a Firm Hires Another Worker and Her Marginal Product

question 101

Multiple Choice

If a firm hires another worker and her marginal product of labor is zero,we know that the firm's total output is

• A) zero.
• B) unchanged.
• C) increasing.
• D) decreasing.
• E) equal to the marginal product of that worker.

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Definitions:

Prohibits

To formally forbid something by law, rule, or other authority.

Behavior

The actions or reactions of an entity (often a person or group) in response to external or internal stimuli.

False Pretenses

Misrepresenting facts or intentional deception to obtain property, funds, or services unlawfully.

Theft

The act of taking someone else's property without permission with the intent to keep it permanently.