If the MPP of an Additional Unit of Labor Is

question 113

Multiple Choice

If the MPP of an additional unit of labor is 4 units per hour,product price is constant at $9 per unit,and the wage rate is $35 per hour,then:

• A) An additional unit of labor should not be employed because it costs more than it is worth.
• B) An additional unit of labor should be employed.
• C) The employer should raise wages and hire additional workers.
• D) In order to earn a profit,the price of the product must decrease.

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Definitions:

Confidence Level

The probability that a confidence interval will capture the true population parameter, expressed as a percentage.

Population Variance

The average of the squared differences from the Mean, for the entire population.

Zα/2

The z-score that corresponds to the critical value for a two-tailed hypothesis test at a given significance level α.

Maximum Allowable Error

The largest error or deviation from a standard or expected value that is considered acceptable.