Author Question: If a profit-maximizing firm hires an additional unit of labor, what must be true about labor's wage ... (Read 123 times)

Wadzanai · **on:** Jun 30, 2018

If a profit-maximizing firm hires an additional unit of labor, what must be true about labor's wage and marginal revenue product?
a. Its wage always equals its marginal revenue product.
b. Its wage is always greater than its marginal revenue product.
c. Its wage is always total revenue minus marginal revenue product.
d. Its wage is always greater than or equal to its marginal revenue product.
e. Its wage is always less than or equal to its marginal revenue product.

Question 2

In the U.S., people tend to discard items rather than repair them because
a. Americans are lazy
b. of the high opportunity cost of time
c. it is costly to use land for waste disposal
d. high wages in the waste disposal industry discourages repairs
e. low wages in the repair industry encourages disposal