If the Marginal Revenue Product of the Last Worker Hired

question 156

Multiple Choice

If the marginal revenue product of the last worker hired exceeds the marginal factor cost of the worker, the firm would be better served if it

• A) hires additional workers.
• B) maintains its current level of workers already hired.
• C) lays off the last worker hired.
• D) None of the above is a good option for a profit-seeking firm.

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Definitions:

Closing Stock Price

The final price at which a stock is traded on a given trading day.

75th Percentile

A value below which 75% of the data points in a distribution fall, also known as the third quartile.

sample Data

Collected portions of data from a population used to infer or estimate characteristics of the entire population.

Covariance

A measure of how much two random variables change together.