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

Economics

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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.

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Which of the following would be an example of a fixed cost to a firm?

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For inferior goods, a decrease in income will cause the

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