If a Profit-Maximizing Firm Hires Its Eleventh Worker,then It Can

question 98

Multiple Choice

If a profit-maximizing firm hires its eleventh worker,then it can be inferred that when the firm hired the first 10 workers,the

• A) wage was larger than the value of the marginal product of labor (VMPL).
• B) value of the marginal product of labor (VMPL)was larger than the wage.
• C) marginal product of labor was increasing.
• D) market was becoming less competitive.
• E) labor demand curve of this firm was becoming more steep.

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Definitions:

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in generating sales from its assets, calculated by dividing total revenue by average total assets.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in utilizing its assets to generate sales or income, calculated by dividing net sales by the average total assets.

Dividends Per Share

The total dividends declared by a company for each share of its stock.

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects revenue from its credit customers, calculated by dividing net credit sales by average accounts receivable.