Exhibit 13-2
-Refer to Exhibit 13-2. If the wage rate is $60, the firm with the MRP should hire ____ units of labor.

Name: Exhibit 13-2 -Refer to Exhibit 13-2. If the wage rate is $60, the firm with the MRP should hire ____ units of labor.
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Question

Exhibit 13-2 
-Refer to Exhibit 13-2. If the wage rate is $60, the firm with the MRP should hire ____ units of labor.

Quizplus · Accepted Answer

The firm should hire labor until the marginal revenue product (MRP) equals the wage rate. If the wage rate is $60, the firm should hire 5 units of labor, assuming the MRP of the 5th unit is $60.

Exhibit 13-2 -Refer to Exhibit 13-2. If the Wage Rate Is $60