Question
A firm in a perfectly competitive labor market is employing labor where the marginal revenue product of the last unit is $20 and the marginal
A firm in a perfectly competitive labor market is employing labor where the marginal revenue product of the last unit is $20 and the marginal factor cost is $10. Based on this, the firm should
a. employ more units of labor
b. employ fewer units of labor
c. lower its offered wage for labor
d.increase its offered wage for labor
e. use more capital instead of labor
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Macroeconomics
Authors: David C. Colander
10th edition
1259663043, 1259663048, 978-1259663048
