A Profit-Maximizing Firm Will Hire Workers Up to the Quantity

question 145

Multiple Choice

A profit-maximizing firm will hire workers up to the quantity of labour where:

• A) VMPL > W.
• B) VMPL = W.
• C) VMPL < W.
• D) MP × MR = VMPL.

---

Definitions:

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life to represent how much of the asset's value has been used.

Estimated Useful Life

The expected period over which an asset is anticipated to be used by a business.

Leasehold

An interest in an asset that gives the holder the right to use it for a specified period of time, typically relating to property or land.

Lessor

The party in a lease agreement who owns the asset and grants the lessee the right to use the asset for a specified period.