Question
Assume that a firm is hiring labor in a perfectly competitive labor market. If the marginal revenue product of labor is greater than the wage
Assume that a firm is hiring labor in a perfectly competitive labor market. If the marginal revenue product of labor is greater than the wage rate, which of the following will be true?
The firm must be losing money.
The firm should employ more workers.
The firm should replace workers with capital.
The firm is maximizing its profits.
The firm is experiencing diminishing marginal utility.
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Economics
Authors: Campbell McConnell, Stanley Brue, Sean Flynn
21st Edition
1259723224, 9781259723223
