If a firm hires a worker by paying him a wage higher than his value of marginal product, ________
A) the firm will earn higher profits B) the firm is making an optimum decision
C) firing the worker will increase the firm's profits D) firing the worker will reduce the firm's profits
C
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Refer to the figure above. What is the producer surplus after Lithasia opens up to free trade?
A) $2 B) $3 C) $6 D) $9
A common complaint about environmental law and enforcement is that it
a. applies only to firms that produce goods, not services b. is politically motivated c. doesn't work at all d. can be too burdensome to producers e. still results in some pollution
Menu costs are the:
a. cost of changing interest rates. b. cost of converting currencies. c. cost of changing prices. d. cost of changing exchange rates.
Supply-side economics calls for:
A. lower taxes on businesses and individuals. B. regulatory reforms to increase enforcement. C. reduction in trade barriers. D. increased government spending on infrastructure.