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In order to maximize profits, a competitive firm that competitively hires labor at the constant wage of w chooses to hire workers up to the

In order to maximize profits, a competitive firm that competitively hires labor at the constant wage of w chooses to hire workers up to the point where w=VMPE. This condition Multiple choice question. would not hold if VMPE was increasing. always holds regardless of the shape of VMPE. only holds if all workers are equally productive. holds because the wage is always less than VMPE

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