If MPL < W, the Firm

question 12

Multiple Choice

If MPL < w, the firm:

• A) has the optimal amount of labor
• B) should fire some labor until MPL = w
• C) should fire some labor until MPL = 0
• D) should hire more capital until MPK = 0
• E) should hire more capital until MPL = w

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Definitions:

Horizontal Specialization

An organizational structure approach that focuses on dividing work and roles based on specialized functional activities or operations across the same hierarchical level.

Division of Labor

The allocation of different tasks or jobs to different people or groups, often to improve efficiency and productivity.

Economic Power

The ability of an entity, such as a country, company, or individual, to influence or control economic activities, markets, or resources, often translating into political or social power.

Learning Organization

An organization that actively encourages, facilitates, and values the continuous learning and development of its members, promoting adaptability and innovation.