If a Firm Wants to Maximize Profits, It Should Hire

question 206

Multiple Choice

If a firm wants to maximize profits, it should hire workers up to the point at which

• A) total factor cost = total revenue.
• B) marginal factor cost = marginal revenue product.
• C) marginal utility = marginal cost.
• D) total social benefit = total social costs.

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Definitions:

Olfactory Receptors

Specialized nerve cells in the nose responsible for detecting odors in the environment and conveying the information to the brain.

Odorant Molecules

Chemical particles that are detected by sensory receptors in the nose, leading to the perception of smells.

Basilar Membrane

A part of the cochlea in the inner ear that plays a key role in the sense of hearing by vibrating in response to sound.

Basilar Membrane

The basilar membrane is a structure in the cochlea of the inner ear; it plays a crucial role in the sense of hearing by facilitating the conversion of sound vibration into neural signals.