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Suppose a Perfectly Competitive Firm Faces a Labor Market in Which

Question 13

Multiple Choice

Suppose a perfectly competitive firm faces a labor market in which the going wage rate is $480 per week. If the last worker hired has a marginal physical product of 12 units of output per week, what is the selling price of the firm's output?


A) $12 per unit
B) $40 per unit
C) $480 per unit
D) $240 per unit

Correct Answer:

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