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A Profit-Maximizing Firm That Wants to Train Its Workers CANNOT

Question 42

Multiple Choice

A profit-maximizing firm that wants to train its workers CANNOT


A) equate the marginal revenue product of labor to the value of expenditures on labor over time.
B) allow worker marginal revenue product in the post-training period to exceed the wage paid in the post-training period.
C) allow the wage in the post-training period to be equal to or greater than the worker's post-training marginal revenue product.
D) allow the cost of training to exceed worker marginal revenue product during the training period.

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