The table below shows the total production for varying numbers of hours worked producing yo- yos.The firm sells its product and hires its workers in competitive markets. TABLE 13- 4
-A perfectly competitive firm will continue to increase production until the marginal cost of the variable factor is
A) less than the marginal revenue of the firm's output.
B) equal to zero.
C) equal to the marginal revenue of the firm's output.
D) equal to the marginal revenue product of the factor.
E) greater than the marginal revenue of the firm's output.
Correct Answer:
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