A profit-maximizing firm will pay a worker:
A) the value of the worker's marginal product.
B) the revenue that it earns by selling one unit of the product.
C) less than the value of the worker's marginal product.
D) more than the value of the average revenue of the firm.
A
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The real wage rate is the ________ divided by the ________
A) equilibrium quantity of employment; potential GDP B) nominal wage rate; inflation rate C) nominal wage rate; price level D) quantity of labor demanded; quantity of labor supplied E) quantity of labor supplied; quantity of labor demanded
A narrow target zone exchange rate band (such as the EEC had until 1992 ) is most similar to
A) a flexible exchange rate system. B) a single currency. C) a fixed exchange rate system. D) an undervalued currency. E) a managed floating exchange rate.
Accounting profits at a firm's break-even point are
A) positive. B) negative. C) zero. D) indeterminate since we need to know what demand is.
Like biologists and physicists, economists use the dispassionate development and testing of how the world works known as the