Question

Description Instructions Timed Test This test has a time limit of 1 hour and 30 minutes. You will be notified when time expires, and you may continue or submit Warnings appear when half the time, 5 minutes, 1 minute, and 30 seconds remain Multiple Attempts Not allowed. This test can only be taken once. Force Completion Once started, this test must be completed in one sitting. Do not leave the test before clicking Save and Submit Your answers are saved automatically. Remaining Time: 40 minutes, 03 seconds. Question Completion Status: » A Moving to another question will save this response. Question 19 As applied to labor demand, the marginal approach to profit says that a firm should increase employment if doing so adds more to revenue than it adds to cost requires setting marginal revenue equal to the wage rate requires setting marginal cost equal to the wage rate is irrelevant Moving to another question will save this response.

Answer 1

Question 19) As applied to labor demand, the marginal approach to profit says that a firm should increase employment if doing so adds more to revenue than it adds to cost. This means that if adding more labour increases the profit, then the firm should employ more workers and produce more. The point where increasing output increase the cost and the revenue equally, then, at point the firm is maximising its profits. So, option 1 is the correct answer.

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