Exhibit 10-5 A perfectly competitive labor market

-In Exhibit 10-5,when the marginal revenue product is $20.00,the firms should ____ workers.

Name: Exhibit 10-5 A perfectly competitive labor market -In Exhibit 10-5,when the marginal revenue product is $20.00,the firms should ____ workers.
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Question

Exhibit 10-5 A perfectly competitive labor market
 
-In Exhibit 10-5,when the marginal revenue product is $20.00,the firms should ____ workers.

Quizplus · Accepted Answer

If the marginal revenue product is $20.00, the firm should continue hiring workers as long as the wage rate is below $20.00, since hiring additional workers adds more to revenue than it costs.

Exhibit 10-5 a Perfectly Competitive Labor Market