A Firm Can Maximize Profit by Hiring Labor Up to the Point

question 76

Multiple Choice

A firm can maximize profit by hiring labor up to the point where

• A)the marginal revenue product equals the wage rate
• B)the marginal product equals marginal cost
• C)total revenue equals total cost
• D)the marginal revenue product equals marginal product
• E)the marginal revenue product is zero

---

Definitions:

Depreciation Method

A systematic approach used to allocate the cost of a tangible asset over its useful life.

Sales Price

The amount of money charged for a product or service, or the sum that customers are willing to pay for it.

Straight-line Method

A depreciation technique that allocates an equal amount of depreciation expense each year over the useful life of an asset.

Estimated Salvage Value

The expected value that an asset will realize upon its sale at the end of its useful life, used in computing depreciation.