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:

P(A|B)

The probability of event A occurring given that event B has already occurred, representing a conditional probability.

Complement

In probability theory, the complement of an event is the set of all outcomes in the sample space that are not included in the event itself.

Independent

In statistical analysis, this term describes variables that are not affected by changes in other variables.

Equivalent

A term used to indicate two items, systems, or quantities that are the same or have identical value or function.