A Firm Will Hire Additional Units of Any Input Up

question 28

Multiple Choice

A firm will hire additional units of any input up to the point where

• A)the marginal productivity of the input is maximized.
• B)the marginal cost of employing the input is minimized.
• C)the expense of employing the last unit is equal to the revenue brought in by the last unit.
• D)the revenue brought in by the input is maximized.

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Definitions:

Z-scores

Standardized scores that indicate the number of standard deviations an element is from the mean of its distribution.

Absolute Value

A number's distance from zero on the number line, without considering its direction; denoted by two vertical bars on either side of the number.

Second Quartile

Also known as the median; it splits the data set into two halves, with 50% of the data below it and 50% above it.

Relative Standing

A measure or ranking of a value or observation within the context of a larger set of data or population.