Asked by
Taylor Nicole
on Nov 05, 2024
Verified
If the wage rate is less than the marginal revenue product of labor, the firm should ________ to maximize profits.
A) hire less labor and produce less output
B) hire less labor and produce more output
C) hire more labor and produce less output
D) hire more labor and produce more output
Marginal Revenue Product
The additional revenue generated from employing one more unit of a factor, such as labor or capital, in the production process, critical for decision-making in resource allocation.
- Comprehend the elements that affect a company's recruitment choices and their effect on maximizing profits.
- Perceive the interplay between rates of remuneration, productivity rates, and levels of employment in a competitive job market.
Verified Answer
BG
Learning Objectives
- Comprehend the elements that affect a company's recruitment choices and their effect on maximizing profits.
- Perceive the interplay between rates of remuneration, productivity rates, and levels of employment in a competitive job market.