A firm should hire more workers to increase its profits if
A) the marginal product of labor is greater than the wage the firm will pay these workers.
B) there is enough capital and other resources for the workers to use.
C) the demand for labor is elastic.
D) the wage rate is less than the marginal revenue product of labor.
D
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A study of the U.S. price level and real GDP from 1972 to 2007 reveals a clear upward march toward higher prices and greater output. What explains this?
a. Both the aggregate demand curve and the aggregate supply curve have shifted to the left year after year. b. Both the aggregate demand curve and the aggregate supply curve have shifted to the right year after year. c. The aggregate supply curve has shifted to the right while the aggregate demand curve has shifted to the left. d. The aggregate supply curve has shifted to the left while the aggregate demand curve has shifted to the right.
The interest rate that the Fed pays on reserves acts as a ceiling on the federal funds rate
Indicate whether the statement is true or false