At What Point Will a Competitive Firm Stop Hiring Additional

question 127

Multiple Choice

At what point will a competitive firm stop hiring additional labour?

• A)When its total product is maximized.
• B)When the marginal product of labour is maximized.
• C)When the marginal revenue product of labour is maximized.
• D)When the marginal revenue product of labour is just equal to the wage rate.

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Definitions:

Standard Deviation

A statistical measure of the dispersion or variability of a set of numbers, showing how much variation exists from the average.

Risk-averse

Describes individuals or entities that prefer to avoid risk and would rather settle for a less uncertain outcome than a potentially higher but risky return.

Expected Income

The amount of money an individual or entity anticipates to receive over a certain period, often based on current or past earnings.

Risk-averse

Describes individuals or entities that prefer to avoid risk and choose the option with the least uncertainty and potential for loss.