The Change in a Firm's Revenue as a Result of Hiring

question 42

Multiple Choice

The change in a firm's revenue as a result of hiring one more worker

• A)is the definition of the marginal product of labour.
• B)is equal to the firm's marginal cost.
• C)is the definition of the marginal revenue product of labour.
• D)will be negative if the demand for the firm's output is inelastic.

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Definitions:

Co-Active Task

A task that involves mutual or joint activity, requiring participants to work together actively towards a common goal.

Free-Riding

The behavior of individuals who benefit from resources or services without contributing to their provision.

Social Loafing

The situation in which people demonstrate lower effort in pursuing a goal as part of a group than they do while working solo.

Human Efficiency

The effectiveness with which humans perform tasks, often evaluated in terms of speed, accuracy, and energy expenditure.