If the MRP of Labor Were $50 and the Wage

question 139

Multiple Choice

If the MRP of labor were $50 and the wage rate were $100,

• A)exactly the right amount of labor is being used.
• B)not enough labor is being used.
• C)only half as much labor is being used as should be used.
• D)too much labor is being used.

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Definitions:

Dissolved

The process of legally dissolving a corporation or partnership, effectively ending its existence.

Close Corporation

A business structure characterized by a small number of shareholders, no need for formal board meetings, and less stringent regulatory requirements.

Managerial Control

A theory of corporate management that favors insulating managers from shareholders by limiting the shareholders’ power to vote and by making it difficult for the shareholder to sue managers.

Outstanding Shares

Represents the total number of shares of a corporation's stock that are currently owned by all shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.