--%>

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 : Relative Prices-Rational consumer I

    I have a problem in economics on Relative Prices-Rational consumer. Please help me in the following question. The rational consumer buying decisions based on: (1) Present prices. (2) Absolute prices. (3) Nominal prices. (4) Relative prices.

    Q : Law of equal marginal advantage to

    I have a problem in economics on Law of equal marginal advantage to consumer behavior. Please help me in the following question. Pertaining the law of equal marginal benefits to consumer behavior outcomes the principle of: (i) Diminishing the marginal utility. (ii) Ov

  • Q : Maximum possible total revenue from

    Maximum possible total revenue by sales of the extremely popular St. Valentine’s Day software is about: (i) $65 million. (ii) $45 million. (iii) $85 million. (iv) $105 million. (v) $200 million.

    Q : Demand curve of an oligopolist The

    The demand curve an oligopolist faces is kinked at the current price when other firms into the industry: (1) face unitary elasticity of demand at their current output levels.(2) will match any price cuts although not price hikes. (3)

  • Q : Can GDP be more than GNP Can GDP be

    Can GDP be more than GNP? Answer: Yes, GDP can be greater or more than GNP if NFIA is negative.

  • Q : Choosing a statistical Model Choosing a

    Choosing a statistical Model: A number of problems arise in determining whether the work is truly rigorous or not. It is important to determine whether the model chosen makes theoretical and intuitive sense. <

  • Q : Changes in total revenue by price falls

    When the price falls along such demand curve for pizza, in that case total revenue: (w) falls. (x) rises, then falls. (y) rises. (z) does not change.

    Q : Raising prices raises total costs for

    Total revenue at your fried hushpuppy stand has been declining currently. Your partner persevere that increasing hushpuppy prices will increase total revenue, although you believe only as fervently which lowering prices will produce more total revenue

  • Q : Total revenue when a price increases

    For hamburgers the demand is relatively elastic. When the price of hamburgers increases, in that case: (i) the quantity demanded will go up. (ii) its demand will increase. (iii) total revenue will increase. (iv) total revenue will reduce.

  • Q : Unimportant economies of scale If

    If comparing market structures, when economies of scale are unimportant: (w) the most efficient form of market structure is a pure monopoly. (x) purely competitive industries and price discriminating monopolies are equally efficient. (y) price discrim