If a Firm Hires Another Worker and Her Marginal Product

question 22

Multiple Choice

If a firm hires another worker and her marginal product of labor is positive, we know that the firm's total output is:

• A) decreasing.
• B) unchanged.
• C) increasing.
• D) 0 (zero).
• E) equal to the marginal product of that worker.

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Definitions:

Formal Operational

A stage in Piaget's theory of cognitive development where individuals can think abstractly and reason logically.

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A stage in Erik Erikson's theory of psychosocial development occurring in late adulthood, where the individual reflects on their life and either achieves a sense of fulfillment or experiences despair.

Generativity Vs. Stagnation

A stage of adult development, according to Erik Erikson, focusing on the challenge of contributing to future generations versus becoming self-absorbed.

Autonomy Vs. Doubt

A stage in Erik Erikson's theory of psychosocial development where toddlers develop independence and autonomy if exploration is encouraged, or experience shame and doubt if restricted.