A Consultant Interviews the Hiring Manager of a Small, Profit-Maximizing

Multiple Choice

A consultant interviews the hiring manager of a small, profit-maximizing firm. The manager explains that the firm used to have 15 employees, but the most-recently-hired employee has just left the company. The firm is currently advertising to hire a worker to replace the employee who just left at the same wage rate. We can infer that

A) for the 15th employee, the wage exceeded the value of the marginal product of labor.
B) for the 15th employee, the value of the marginal product of labor exceeded the wage.
C) the firm is too large and should remain at 14 employees.
D) the firm is no longer attempting to maximize profits.