A Profit-Maximizing Firm in a Competitive Market Will Employ More

question 33

Multiple Choice

A profit-maximizing firm in a competitive market will employ more workers until the

• A) marginal product equals the wage.
• B) marginal product equals zero.
• C) marginal revenue product equals zero.
• D) marginal revenue product equals marginal cost.
• E) value of the marginal product equals the wage.

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Definitions:

General Adaptation Syndrome

A model that describes the body's short-term and long-term reactions to stress, consisting of three stages: alarm, resistance, and exhaustion.

Adrenaline

A hormone and neurotransmitter involved in the fight-or-flight response, increasing heart rate, muscle strength, blood pressure, and sugar metabolism.

Noradrenaline

A neurotransmitter and hormone involved in the body's response to stress, increasing heart rate and blood pressure, and part of the fight or flight response.

Psychological Hardiness

A personality trait characterized by resilience and the capability to endure stressful situations effectively.