A firm is unlikely to hire a worker if:
A. there are diminishing marginal returns to labor.
B. the minimum wage set by law is less than the equilibrium wage in the market.
C. the additional revenue generated by hiring the worker is less than his or her wage.
D. the additional output a firms gets by hiring the worker is greater than his or her wage.
Answer: C
You might also like to view...
Are the curves in the figure above drawn CORRECTLY? If not, what's wrong?
What will be an ideal response?
If the long-run market supply curve is perfectly elastic, an increase in demand will cause the final equilibrium to be at:
A. the original price but with a higher output. B. a higher price with a higher output. C. a higher price but with the same output. D. the original price but at a smaller output.
Which of the following would be an example of a fixed cost to a firm?
A) rent for the building it occupies B) wages for the laborers C) the cost of raw materials D) electricity and other fuel costs
For inferior goods, a decrease in income will cause the
A. demand to increase. B. quantity demanded to increase. C. demand to fall. D. quantity demanded to fall.