Assume that an employer discovers that the marginal revenue product of the last two workers that he has hired is less than the wage rate that he is paying them. He is operating in a purely competitive market in both the output that he sells and the labor that he hires. What would you advise this employer to do and why?

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The Answer of Assume that an employer discovers that the marginal revenue product of the last two workers that he has hired is less than the wage rate that he is paying them. He is operating in a purely competitive market in both the output that he sells and the labor that he hires. What would you advise this employer to do and why?

Assume That an Employer Discovers That the Marginal Revenue Product