If the wage rate is less than the marginal revenue product of labor, the firm should ________ to maximize profits.
A. hire more labor and produce less output
B. hire less labor and produce less output
C. hire less labor and produce more output
D. hire more labor and produce more output
Answer: D
You might also like to view...
Suppose that a curve has a slope equal to zero at some point A. To the right of A, the curve may
A. have a positive slope. B. have a negative slope. C. be a straight line. D. All of these responses are correct.
Suppose a nation has a total population of 100,000,000. Out of that, 70% are in the labor force and 65% of the population is employed. What is the nation's unemployment rate?
A) 5.0% B) 7.1% C) 7.7% D) 30.0%
The above figure shows the demand and supply curves in the market for milk. If the government imposes a quota at 500 gallons, calculate the deadweight loss
What will be an ideal response?
A citizen of Mexico who has lived in El Paso during the past three years has just sent $100 to relatives in Mexico for Christmas. This transaction is
A) counted in the U.S. balance of payments as a current account item. B) counted in the U.S. balance of payments as a surplus item. C) counted in the U.S. balance of payments as an export item. D) none of the above.