A company finds that for the next worker hired, the worker's VMP is less than the cost of the worker. In this case, to maximize its profit the company should
A) definitely hire the worker.
B) perhaps hire the worker, depending on the relationship between the company's MC and MR.
C) definitely not hire the worker.
D) None of the above answers is correct.
C
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During the production process Ajax Corporation releases pollution into the air. Ajax Corporation operates in a monopolistic competitive industry. Which of the following statements addresses the pollution situation?
A) Ajax is taking advantage of asymmetric information. B) This is an example of a market failure and is a reason for the government to regulate the industry. C) The quality of the product could be improved if the amount of pollution can be reduced. D) This is known as the lemons problem.
During what period did the greatest violence between organized labor and companies occur?
a. 1800-1820. b. 1860-1870. c. 1875-1895. d. 1910-1930.
Trade-offs arising from limited resources give rise to:
a. rational self-interest b. opportunity costs c. unlimited wants d. scarce resources
An increase in the price of foreign oil can shift the economy’s aggregate supply curve _____ resulting in inflation.
A. inward B. outward C. along the curve D. None of the above is correct.