If a profit-maximizing firm hires an additional unit of labor, what must be true about labor's wage and marginal revenue product?
a. Its wage always equals its marginal revenue product.
b. Its wage is always greater than its marginal revenue product.
c. Its wage is always total revenue minus marginal revenue product.
d. Its wage is always less than or equal to its marginal revenue product.
D
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If the economy were producing at point A and moved to point B the opportunity cost in terms of lost production of robots would be
A. 1 unit of robots.
B. 2 units of robots.
C. 3 units of robots.
D. 2 units of outboard motors.
Refer to Table 9-17. Looking at the table above, real average hourly earnings between 2015 and 2016 changed by
A) 1.2%. B) 4.5%. C) 9.9%. D) 14.5%.
A commitment strategy is an agreement in which players agree to:
A. submit to a penalty in the future if they defect from a given strategy. B. cooperate before the game begins. C. cooperate in repeated games until someone defects. D. None of these is a definition of a commitment strategy.
The fact that the United States exports Budweiser beer and imports Heineken beer can be explained by:
a. the differences in labor productivity in the U.S. and other countries. b. the differences in factor endowments in the U.S. and its trading partners. c. the world price of Budweiser beer is lower than Heineken beer. d. the fact that production of Budweiser beer in the U.S. is inadequate compared to its demand. e. the preference for foreign brands of beer by a part of the U.S. population.