We observe a profit-maximizing firm hiring its 75th employee. It is possible to infer that, when 74 employees are hired, the
a. wage exceeds the value of the marginal product of labor.
b. value of the marginal product of labor exceeds the wage.
c. marginal product of labor is increasing.
d. firm is attempting to increase its market share.
b
You might also like to view...
The U.S. dollar is a composite currency
a. True b. False Indicate whether the statement is true or false
An economic model is a realistic depiction of the operation of the economy
a. True b. False Indicate whether the statement is true or false
Briefly and concisely define the following terms
a. voluntarism b. direct controls c. depletable resource
According to the Weber-Fechner law, when the change in a stimulus is small in proportion to the original stimulus, the perceived size of the change will be:
A. small. B. large. C. greater than one. D. impossible to determine.