If the Value of the Marginal Product of Labor Exceeds

question 12

True/False

If the value of the marginal product of labor exceeds the wage rate, then a competitive, profit-maximizing firm would want to hire less labor.

---

Definitions:

Gallons

A unit of volume measurement used primarily in the United States to quantify liquids.

Standard Costs

Predetermined costs for manufacturing a product, used for budgeting and assessing performance.

Cost of Goods Sold

The total direct costs attributable to the production of goods sold by a company, including materials and labor.

Labor Rate Variance

The difference between the actual cost of labor and the budgeted or expected cost of labor, often analyzed in cost accounting.