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The Last Worker Hired at a Competitive Firm Has a Value

Question 30

Multiple Choice

The last worker hired at a competitive firm has a value of marginal product of $17 and he is paid the market wage of $15.The firm could __________ by __________.


A) reduce losses;hiring fewer workers
B) increase profit;hiring more workers
C) reduce losses;hiring more workers
D) increase profit;hiring fewer workers
E) maximize profit;hiring more workers

Correct Answer:

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