When the competitive firm's value of the marginal product of labor intersects the market-wage level, the firm:
A. has found the profit-maximizing quantity of labor to hire.
B. can increase its profits by hiring any amount greater than that point.
C. should consider shutting down since it is not earning profits.
D. can increase its profits by hiring any amount less than this point.
Answer: A
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Between 1992 and 2012, the percentage of students borrowing to pay for college
A. remained constant at 30%. B. decreased from 73% to 58%. C. increased from 34% to 57%. D. decreased from 18% to 13%.
As the price of labor increases relative to the price of capital, the firm will move to a more labor-intensive production method to minimize costs
Indicate whether the statement is true or false
A vertical LM curve means that
A) monetary policy has no impact on the interest rate. B) monetary policy has no impact on income. C) fiscal policy has no impact on the interest rate. D) fiscal policy has no impact on income.
A quality-of-life innovation generates ________ externalities or reduces ________ externalities.
A. revenue; cost B. positive; negative C. marginal; average D. network; out-of-network