A profit maximizing firm will hire additional workers until
A) the additional cost associated with hiring the last worker equals the average wage rate of the workers.
B) the additional cost associated with hiring the last worker equals the additional revenue generated by that worker.
C) the extra revenue generated by the last worker hired equals zero.
D) the extra cost associated with hiring the last worker equals the price of the good produced.
B
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In the United States, from 1980 to 2011, the percentage of
A) part-time workers who are part time for noneconomic reasons has increased significantly to over 30 percent. B) part-time workers who are part time for noneconomic reasons has risen during recessions and fallen during expansions. C) part-time workers who are part time for economic reasons has increased significantly to over 30 percent. D) part-time workers who are part time for economic reasons has risen during recessions and fallen during expansions. E) None of the above answers is correct.
Refer to Figure 3-1. If the product represented is an inferior good, a decrease in income would be represented by a movement from
A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.