The marginal revenue product sets an upper limit to the wage rate an employer will pay.
Answer the following statement true (T) or false (F)
True
In the sense that no profit-maximizing company should pay anybody more than he or she contributes, the company should be willing to pay someone only the marginal revenue product that he or she contributes. In other words, the marginal revenue product sets an upper limit to the wage rate an employer will pay.
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The principal-agent problem:
A. arises from an imbalance of information. B. is caused by the principal having imperfect information about the agent. C. is caused by the principal being unable to perfectly observe the actions of the agent. D. All of these statements are true.
A deadweight loss arises under perfect competition
a. True b. False Indicate whether the statement is true or false
Taxes and government spending that affect fiscal policy without specific action from policymakers are called:
A. automatic stabilizers. B. discretionary fiscal policy. C. expansionary fiscal policy. D. contractionary fiscal policy.
Which of the following is equivalent to the trade deficit?
a. Imports ? exports b. Net capital inflow c. Exports + imports d. Net exports - imports e. Exports ? imports