Table 5.1 Two-Period Training Model

Multiple Choice

Table 5.1 Two-Period Training Model

-A profit-maximizing firm which wants to train its workers during the first period CANNOT (see Table 5.1 for definitions of abbreviations)

A) equate the present value of the marginal product of labor to the present value of expenditures.
B) allow WO + Z - MP1 to be greater than zero.
C) allow W1 to be greater than MPl.
D) allow Z to be greater than WO.