If the value of marginal product of the last worker hired is $24 and the wage rate is $25, then
A) more workers should be hired.
B) the worker should be fired.
C) the firm has hired the profit maximizing number of workers.
D) the firm is earning $1 of profit from this worker.
B
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If Jacqueline is willing to accept $1 for a cupcake and Jameson is willing to pay $3 for a cupcake, and they negotiate a price of $2 for a cupcake, the cooperative surplus is
A) $1. B) $2. C) $3. D) $4.
The Coase Theorem implies that when there are no costs to trading, _____
a. resources will move to their most valued uses, depending upon who gets the initial property rights b. resources will move to their most valued uses, regardless of who gets the initial property rights c. resources might be misallocated, depending upon the who gets the initial property rights d. resources might be misallocated, regardless of who gets the initial property rights