A Profit-Maximizing Firm Will Hire the Variable Input, Labor, Until

question 38

Multiple Choice

A profit-maximizing firm will hire the variable input, labor, until the point where:

• A) marginal product of labor is equal to the marginal revenue product of capital.
• B) marginal revenue from each unit of output is equal to the wage rate.
• C) marginal revenue product of labor is equal to the marginal cost of labor.
• D) marginal revenue product of labor is equal to zero.
• E) marginal product of labor equals the marginal revenue from each unit of output.

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Definitions:

Theory

A systematically organized set of concepts, explanations, and propositions that explain or predict events or situations by specifying relations among variables.

Visual System

The part of the central nervous system that allows organisms to see, including the eyes, optic nerves, and visual areas of the brain.

Fully Develop

Fully Develop means to reach the maximum potential or maturity in physical, mental, emotional, or cognitive aspects.

Months

Units of time, typically consisting of 28 to 31 days, used in calendars to divide the year into twelve periods.