Suppose a perfectly competitive firm faces a labor market in which the going wage rate is $90 per day. If the last worker hired has a marginal physical product of 15 units of output per day, what is the selling price of the firm's output?
A) $6 per unit
B) $15 per unit
C) $45 per unit
D) $90 per unit
Correct Answer:
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Q7: The market demand for labor is
A) upward
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A) firms hire
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