If a Firm Hires Labour and with Its Current Employees

question 91

Multiple Choice

If a firm hires labour and with its current employees W = VMPL,then profit:

• A) is maximized.
• B) can be increased by hiring less labour.
• C) can be increased by hiring more labour.
• D) can be increased by increasing the wage rate.

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Definitions:

Business Segment

A distinct part of a company that focuses on a specific product or market sector, often with its own performance measurement.

Debt to Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity, indicating the proportion of equity and debt used to finance the company's assets.

Comparative Financial Statement

Financial statements that provide a comparison of a company's financial performance over multiple periods.

Common-Size Financial Statement

A financial analysis tool that expresses each line item as a percentage of a common base figure.