A Profit-Maximizing Firm Hires Labor Up to the Point Where

question 52

Multiple Choice

A profit-maximizing firm hires labor up to the point where

• A) price of the product equals the value of marginal product.
• B) price of the product equals the wage rate.
• C) the wage rate multiplied by the quantity of labor equals the marginal product.
• D) the wage rate equals the value of marginal product.
• E) marginal revenue equals the wage rate.

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Definitions:

Milligrams

A unit of mass equal to one thousandth of a gram, often used to measure medication doses or nutritional supplements.

Subphylum Chelicerata

A major subdivision of the phylum Arthropoda, including arachnids (such as spiders and scorpions) and horseshoe crabs, characterized by the presence of chelicerae, a pair of appendages serving as mouthparts.

Spider

An arachnid known for having eight legs, no wings, and often spinning webs to capture prey.

Maxillae

Appendages used for manipulating food; characteristic of crustaceans.