If a profit-maximizing firm hires an additional unit of labor, what must be true about labor's wage and marginal revenue product?
A) Its wage always equals its marginal revenue product.
B) Its wage is always greater than its marginal revenue product.
C) Its wage is always total revenue minus marginal revenue product.
D) Its wage is always greater than or equal to its marginal revenue product.
E) Its wage is always less than or equal to its marginal revenue product.
Correct Answer:
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Q71: Ten cases of spring water are sold
Q145: Exhibit 11-10 Q146: If a firm is hiring in a Q148: A firm will purchase additional units of Q149: For a firm in a perfectly competitive Q151: Exhibit 11-10 Q152: Marginal revenue product is defined as the Q153: The marginal resource cost of a resource Q154: Exhibit 11-9 Q155: The change in total revenue that results Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
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