Let MP = Marginal Product, P = Output Price, and W

question 161

Multiple Choice

Let MP = marginal product, P = output price, and W = wage, then the equation that represents the condition where a competitive firm would hire another worker is

• A)P × MP = W.
• B)P × MP < W.
• C)P × MP > W.
• D)P × W > MP.

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Definitions:

Vertex

The highest or lowest point of a parabola where it changes direction, or a corner point of a geometric shape.

Focus

In geometry and optics, the point where rays or waves meet or from which they diverge, especially after reflection or refraction.

Function

A relation between a set of inputs and a set of permissible outputs with the property that each input is related to exactly one output.

Vertices

Plural of vertex, referring to the corners or angular points where two or more edges meet in a geometrical shape or graph.