The firm's gain in profit from hiring another worker is
A) the marginal revenue product of the extra worker.
B) the extra output of the extra worker.
C) the reduction in costs from hiring another worker.
D) the difference between marginal revenue product and the wage of the worker.
D
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The government wants to increase its spending by $1 billion to stimulate the economy and is counting on the government spending multiplier to help. Taking into account direct expenditure offset effects, what is its best spending option?
A) a new cruise missile for the military B) expanding the school lunch program C) constructing more low income housing D) providing textbooks for college students
For a vertical demand curve,
a. the slope is undefined, and the price elasticity of demand is equal to 0. b. the slope is equal to 0, and the price elasticity of demand is undefined. c. both the slope and price elasticity of demand are undefined. d. both the slope and price elasticity of demand are equal to 0.