Exhibit 26-4
-Refer to Exhibit 26-4. In evaluating the marginal cost and revenue of hiring additional units of labor, the firm will not hire
A) the second worker.
B) the fourth worker.
C) labor up to the point where MRP equals the market price of the input.
D) labor up to the point where MRP = MFC.
E) both c and d
Correct Answer:
Verified
Q83: Exhibit 26-4 Q84: Marginal factor cost (MFC) is Q85: The least-cost rule requires that, for every Q86: Marginal revenue product (MRP) is Q87: For a factor price taker, the marginal Q89: Marginal productivity theory implies that a worker Q90: A factor price taker is a firm
A)the additional cost
A)equal to marginal
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