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If the Marginal Revenue Product of a Worker Exceeds the Wage

Question 22

Multiple Choice

If the marginal revenue product of a worker exceeds the wage at which he could be hired,


A) then the worker's marginal factor cost will exceed his wage.
B) then the worker's wage will exceed his marginal factor cost.
C) the firm will diminish its profit by hiring the worker.
D) the firm can add to its profit by hiring the worker.

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