An additional worker will add to the profit of a business, and therefore be more likely to be hired, if the
A. marginal cost of labor is greater than the marginal revenue.
B. marginal revenue is less than the price of the output of the business.
C. average cost of labor is positive.
D. wage is less than the marginal revenue.
Answer: D
You might also like to view...
The United Auto Worker (UAW) would best be classified as
A) a craft union. B) an industrial union. C) a guild. D) closed shop union. E) none of the above
Which of the following statements refers to the wage-price spiral process?
(A) The salary of a worker fluctuates with the amount of sales he or she accomplishes per month. (B) Employees only receive a raise when their purchasing power has been eroded by inflation. (C) An employee loses his or her job, finds a position at another company, and is underemployed. (D) A worker receives a raise, which increases costs for the employer.
The short-run supply curve for a perfectly competitive firm is the marginal cost curve ?
A. at all price levels because the firm chooses the profit-maximizing quantity of output where marginal revenue equals marginal cost. B. above the minimum point of the average variable cost (AVC) curve because as the price falls, the firm maximizes profit by producing more output to account for a smaller profit margin on each unit. C. above the minimum point of the average variable cost (AVC) curve because the firm maximizes profit by choosing the quantity at which marginal revenue equals marginal cost and below the minimum point of AVC the firm will shut down to minimize its losses. D. above the minimum point of the average total cost (ATC) curve because the firm maximizes profit by choosing the quantity at which marginal revenue equals marginal cost and below the minimum point of ATC the firm will shut down to minimize its losses.
Utility is the set of numerical values that
A) yields an absolute level of pleasure from a bundle of goods. B) reflects the relative ranking of various bundles of goods. C) describes how much more a consumer prefers one bundle to another. D) yields a cardinal ranking of bundles.