The question of how much labor a firm will hire comes down to:
A. whether the value of the marginal product is greater than, less than, or equal to the average total cost.
B. whether added workers are going to generate more revenue than what it costs to hire them.
C. if the added workers are going to add revenues to the firm.
D. the healthcare costs they incur by hiring them.
Answer: B
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Refer to the figure above. If the capital stock is fixed at $300, what is the consumption in the economy?
A) $3,000 B) $4,000 C) $2,000 D) $5,000
All the following statements about the Federal Reserve are true EXCEPT the fact that it ________
A) is a public authority B) regulates a nation's depository institutions C) accepts checking deposits from the nation's residents D) controls the quantity of money
A person is dynamically consistent if:
A. his preferences over the alternatives available at some future date change as the date approaches. B. his preferences over the alternatives available at some future date do not change as the date approaches. C. he is also statically consistent. D. None of these is correct.
If the intended aim of the price floor set in the graph shown was a net increase in the well-being of producers, then positive analysis would have us consider:
A. whether the surplus transferred from consumers to producers is larger than the consumer surplus lost to deadweight loss. B. whether the producer surplus lost due to lower prices is greater than the producer surplus lost due to fewer transactions taking place. C. whether the producer surplus lost to deadweight loss is greater than the producer surplus gained from a higher price. D. whether the surplus transferred from producers to consumers is larger than the consumer surplus lost to deadweight loss.