Profit Maximization Implies That Firms Will Want to ________

question 68

Multiple Choice

Profit maximization implies that firms will want to ________.

• A)accumulate capital while the MPK is greater than the real wage
• B)accumulate capital while the MPK is greater than the rental price of capital
• C)accumulate labor while the MPK is greater than the rental price of capital
• D)accumulate labor while the MPK is greater than the real wage
• E)none of the above

---

Definitions:

Door-In-The-Face

A persuasion technique whereby a large, unreasonable request is made first and, if refused, a smaller, more reasonable request is made.

Lowballing

A sales and negotiation tactic where an initially lower price is offered to lure the customer or counterpart, only to increase it later on.

Normative Influence

Pressure to conform to the expectations or norms of a group, affecting individuals’ behavior and attitudes.

Personal Standards

Individual beliefs or rules about the level of performance or behavior one should achieve or adhere to.