Suppose That the Marginal Revenue Product of the Eighth Worker

question 106

Multiple Choice

Suppose that the marginal revenue product of the eighth worker hired is $12 an hour and the wage rate is $10 an hour.We can say that

• A)not enough labor is being hired.
• B)just enough labor is being hired.
• C)too much labor is being hired.

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Definitions:

Quick Ratio

A liquidity measure that indicates a company's ability to pay its short-term liabilities with its most liquid assets, excluding inventory.

Current Ratio

Current Ratio is a liquidity ratio that measures a company’s ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.

Contingent Liabilities

Potential liabilities that may or may not become actual liabilities, depending on the outcome of uncertain future events.

Environmental Awards

Recognitions given to individuals, organizations, or businesses for significant contributions to the preservation and sustainability of the environment.