At the competitive firm's profit-maximizing quantity of labor:
A. marginal profits are always positive.
B. the value of the last worker's marginal product is greater than or equal to marginal cost of that input.
C. the average product of labor is equal to the wage rate.
D. the value of the last worker's marginal product is less than the marginal cost of that input.
Answer: B
You might also like to view...
If the Baloney Store earns more than a normal profit, its
a. economic profit must be greater than its accounting profit b. economic profit is positive c. economic profit is, therefore, equal to its accounting profit d. accounting profit is zero e. accounting profit is less than its economic profit
If job promotion is viewed as a contest, then
A) tournament theory can be used to explain the use of poison pills. B) tournament theory can be used to explain the level of executive compensation. C) tournament theory can be used to explain the use of greenmail. D) tournament theory can be used to explain the use of golden parachutes.