Competitive firms that maximize profits will hire workers until the value of the marginal product of labor
a. equals the wage.
b. equals the price of the final good.
c. begins to fall.
d. begins to rise.
a
You might also like to view...
Which of the following models focuses on how productivity shocks explain fluctuations in real GDP?
A) the monetarist model B) the new classical model C) the new Keynesian model D) the real business cycle model
What is the midpoint formula for calculating a percentage change?
What will be an ideal response?
For a monopoly, marginal revenue for all units greater than 1:
A. is always less than the price. B. cannot be negative. C. is zero when total profits are maximized. D. is always greater than marginal cost.
Altering the demographic of your workforce in a manner that increases the labor force, like raising a legal minimum retirement age, is likely to:
A. lead to a higher level of income for a country. B. lead to a sustainable high rate of growth in income for a country. C. create more productive workers in all facets of the economy. D. All of these are true.