A Firm Should Hire More Workers to Increase Its Profits

question 100

Multiple Choice

A firm should hire more workers to increase its profits if

• A)the marginal product of labour is greater than the wage the firm will pay these workers.
• B)the wage rate is less than the marginal revenue product of labour.
• C)there is enough capital and other resources for the workers to use.
• D)the demand for labour is elastic.

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Definitions:

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Serotonin

A neurotransmitter that plays a key role in mood regulation, digestion, sleep, and other bodily functions.

Appetite

The natural desire to satisfy bodily needs, especially for food.

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The ability to inhibit the sensation of pain, often through psychological or physiological mechanisms.