If a firm is producing at the level of output where the marginal product of labor is greater than the marginal cost of labor (the wage) ,then
A) profits will increase if the firm hires more workers.
B) profits will increase if the firm fires some workers.
C) the firm always has negative economic rent.
D) the accounting profits are always greater than the economic profits.
E) the firm is maximizing profits.
Correct Answer:
Verified
Q12: Which of the following statements is true?
A)
Q13: The short run production function is concave
Q14: The difference between a firm's revenues and
Q15: In the short run,
A) firms can adjust
Q16: Suppose there is a perfectly competitive firm
Q18: Which of the following is a feasible
Q19: When a firm moves to a lower
Q20: Which of the following is not true
Q21: What is the firm's marginal-revenue product of
Q22: What is the equilibrium wage rate for
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