One Reason That Firms Hire Labor at the Point Where

question 60

Multiple Choice

One reason that firms hire labor at the point where w = MPN is

• A)if w < MPN, the cost (w)of hiring additional workers exceeds the benefits (MPN)of hiring them, so they should hire fewer workers.
• B)if w > MPN, the cost (w)of hiring additional workers is less than the benefits (MPN)of hiring them, so they should hire more workers.
• C)if w < MPN, the cost (w)of hiring additional workers equals the benefits (MPN)of hiring them, so they have the right number of workers.
• D)if w > MPN, the cost (w)of hiring additional workers exceeds the benefits (MPN)of hiring them, so they should hire fewer workers.

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Definitions:

Planning

The process of defining goals, establishing strategies to achieve those goals, and developing plans to integrate and coordinate activities.

Efficiency

The capacity to achieve a desired result with minimal waste of time, effort, or resources.

Human Relations Approach

A management theory focusing on the importance of social relationships, employee well-being, and motivation in the workplace.

Scientific Management

A management theory that emphasizes the use of scientific methods to optimize labor productivity and economic efficiency, originally developed by Frederick W. Taylor.