A perfectly competitive firm discovers that its 
divided by the wage equals 1.25. The firm should
A) check the MRP of the other inputs and divide them by their prices. If they are all equal to 1.25 it is maximizing profits.
B) hire more labor.
C) purchase more capital.
D) try to pay a lower wage rate.
Correct Answer:
Verified
Q334: Q342: If a firm uses only capital and Q346: If a firm wants to maximize profits Q347: A firm that maximizes profits also Q350: If a firm faces perfectly competitive product Q353: If a firm wants to maximize profits Q354: If a firm uses only capital and Q357: Profit maximization requires that Q358: When a firm is hiring an input Q359: A firm will hire a unit of
A) is
A) the marginal factor
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