A profit-maximizing firm in a competitive market will continue to hire more workers when
A) the marginal factor cost exceeds the marginal revenue product of the additional workers.
B) the marginal factor cost equals the marginal revenue product of the additional workers.
C) the marginal factor cost is less than the marginal revenue product of the additional workers.
D) the marginal factor cost is less than zero.
C
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The role of the costs of capital is influenced by the degree to which firms can substitute capital for other inputs of production known as relative prices
Indicate whether the statement is true or false
A typical economic good has which one of the following characteristics?
A) The desired quantity exceeds the quantity available at a zero price. B) The quantity available exceeds the desired quantity at a zero price. C) It uses no resources to produce. D) It is never scarce.
The regular income a person expects to earn annually, which may differ by some unexpected gain or loss from the actual income earned, is known as
a. disposable income b. permanent income c. transitory income d. relative income e. intended income
The term human capital refers to education, training and experience
Indicate whether the statement is true or false