Suppose that in November a profit-maximizing firm has 100 employees. By December, the firm has decreased employment. One can infer that, when 100 employees are hired, the
A) firm is losing market share.
B) firm is minimizing losses.
C) wage exceeds the value of the marginal product of labor.
D) value of the marginal product of labor exceeds the wage.
Correct Answer:
Verified
Q330: When a firm experiences diminishing marginal product,
Q331: Which of the following events would bring
Q332: The negative slope of the value of
Q333: The value of the marginal product of
Q334: For a competitive firm experiencing diminishing marginal
Q336: To maximize profit, a competitive firm hires
Q337: For a profit-maximizing competitive firm, the value
Q338: A competitive firm will hire workers up
Q339: We observe a profit-maximizing firm hiring its
Q340: If the value of the marginal product
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents