A profit-maximizing firm will hire additional units of labor until
A) the additional cost of hiring the last worker equals the additional revenue generated by that worker.
B) the additional cost of hiring the last worker equals the marginal factor cost of the worker.
C) the extra revenue from hiring the last worker equals the marginal physical product of labor.
D) the extra cost from hiring the last worker equals the cost of the product.
Answer: A
You might also like to view...
If the price of orchids falls, the substitution effect due to the price change will cause
A) an increase in the quantity of orchids demanded. B) an increase in the demand for roses, a substitute for orchids. C) an increase in the quantity of orchids supplied. D) an increase in the demand for orchids.
Refer to the above figure. The profit-maximizing price for this firm is
A) P1. B) P2. C) P3. D) P4.
Suppose that at prices of $1, $2, $3, $4, and $5 for product Z, the corresponding quantities supplied are 3, 4, 5, 6, and 7 units, respectively. Which of the following would increase the quantities supplied of Z to, say, 6, 8, 10, 12, and 14 units at
these prices? A. Improved technology for producing Z. B. An increase in the prices of the resources used to make Z. C. An increase in the excise tax on product Z. D. Increases in the incomes of the buyers of Z.
Which of the following is a positive economic statement?
A) The standard of living in the United States should be higher. B) If the price of iPhones falls, a larger quantity of iPhones will be purchased. C) The government should revamp the health care system. D) The U.S. government should not have bailed out U.S. auto manufacturers.