--%>

Hiring labor for Profit Maximization

When the marginal revenue product of the very last worker hired is more than the marginal resource cost of the worker, then the firm: (1) Is experiencing rising returns to the scale. (2) Can raise its gains by hiring more labor. (3) Is maximizing the profit. (4) Must suspend some workers to raise the profit.

Choose the right answer from the above options.

   Related Questions in Microeconomics

  • Q : Assumption of Ceteris paribus Can

    Can someone help me in finding out the right answer from the given options. Suppose that everything except the variables we are studying remains constant or steady is termed as the: (1) Ceteris paribus assumption. (2) Ex-ante assumption. (3) Ex-post assumption. (4) Po

  • Q : Production at exceeds marginal costs by

    For any profit-maximizing monopolist not capable to price discriminate, production arises at an output level where is: (w) price exceeds marginal costs [P > MC]. (x) marginal revenue exceeds marginal costs [MR >

  • Q : Labor markets profit maximization When,

    When, after hiring the very last worker, the organization’s profit is similar as it was before the last worker was hired, then the firm must: (1) Hire more workers to raise the profit. (2) Layoff some workers to raise the profit. (3) Not appoint any more workers

  • Q : Malthusian theory on population What do

    What do you mean by the Malthusian theory on population?

  • Q : Theory of Monopolistic Competition The

    The theory of monopolistic competition was developed through: (1) Alfred Marshall. (2) John Maynard Keynes. (3) Joseph Schumpeter. (4) Edward Chamberlin. (5) Antoine Augustin Cournot. Please choose the right answer

  • Q : Positively sloped supply curve of a

    Can someone please help me in finding out the accurate answer from the following question. According to most conventional theories of labor market: (1) The supply curve of labor is positively sloped as higher salaries attract the extra workers to the labor market. (2)

  • Q : Labor Unions-Secondary Boycotts

    Whenever a firm consists of a collective bargaining agreement with its employees and unionized employees reject to handle the goods generated by other firms if the workers for other firms are on strike, then the unionized employees are engaged in the: (1) Secondary bo

  • Q : Unemployment among skilled workers

    Rises in the legal minimum wage rate have not been blamed for rising: (i) Unemployment among the teenagers. (ii) Racial discrimination in the employment. (iii) Unemployment among trained workers who have lost their jobs since of competition from the cheaper imports. (

  • Q : No close substitutes in monopoly When

    When Perpetual Motion Corporation’s recently-invented and patented teleporter buttons have no close substitutes, in that case Perpetual Motion operates: (1) along with absolute certainty of realizing a pure economic profit. (2) in violation of the laws of demand

  • Q : Perfect mobility and perfect information

    The model of perfect competition assumes perfect mobility and perfect information. Transaction costs are not present; therefore all buyers and sellers base decisions on the best information obtainable to anyone else, as well as transportation (mobilit