Author Question: The decision rule for a profit-maximizing firm operating in a competitive market to hire an ... (Read 38 times)

danielfitts88 · **on:** Jun 29, 2018

The decision rule for a profit-maximizing firm operating in a competitive market to hire an additional worker is the value of the:

A) marginal product of the worker should be equal to or greater than the wage rate.
B) marginal product of the worker should be equal to or lower than the wage rate.
C) average product of the worker being hired should be equal to the wage rate.
D) average product of the worker being hired should be lower than the wage rate.

Question 2

Good A and good B are substitutes in production. The demand for good A increases so that the price of good A rises. The increase in the price of good A shifts the

A) demand curve for good B leftward.
B) demand curve for good B rightward.
C) supply curve of good B leftward.
D) supply curve of good B rightward.