A profit maximizing firm will hire additional workers until
A. the extra cost associated with hiring the last worker equals the price of the good produced.
B. the additional cost associated with hiring the last worker equals the average wage rate of the workers.
C. the extra revenue generated by the last worker hired equals zero.
D. the additional cost associated with hiring the last worker equals the additional revenue generated by that worker.
Answer: D
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When an economy relies on specialization,
A) the economy will generally produce only one product. B) the economy will usually be heavily agricultural. C) each individual in the economy produces the goods or services for which he or she has relatively the best ability. D) each individual will be assigned by the government to produce that good or service the government believes the economy should specialize in.
Platform monopolies:
A. provide an importance service, but present new types of antitrust problems. B. are bad because they earn monopoly profits. C. earn low profits because of network externalities and ought to be broken up. D. are good because they earn monopoly profits.
In recent years the labor force participation rate has been fairly stable
A. although the labor force participation rate of young adults has increased while the labor force participation rate of those in the 40-55 age classification has fallen. B. although the female labor force participation rate has fallen while the male labor force participation rate has increased. C. as has the labor force participation rate for males, females, minorities, and nonminorities. D. although the male labor force participation rate has fallen while the female labor force participation rate has increased.
Positive analysis:
A. leads to the best solutions. B. is the best way to analyze a policy. C. examines if the policy actually accomplished its goals. D. is the only way to analyze a policy.