If a Firm Hires Labour Such That W > VMPL,then

question 127

Multiple Choice

If a firm hires labour such that 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 decreasing the price of the output.

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Definitions:

Market Entry

The act of bringing a new product or service to market, including the challenges and strategies involved in successfully engaging with a new or existing market.

Resources

Resources refer to the inputs used in the production of goods and services, including natural resources, labor, and capital.

Profit Maximized

The point at which a firm or business achieves the highest level of profit possible with its current resources and market conditions.

Competitive Price-Taker Firm

A business that has no control over the market price and must accept the prevailing price set by market supply and demand conditions.