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Suppose the Marginal Product of Labor Equals 1/L

Question 17

Multiple Choice

Suppose the marginal product of labor equals 1/L.If the firm can sell its output for $10 per unit,and the wage is $1 per unit,how many units of labor will the firm hire?


A) 0
B) 1
C) 10
D) 100

Correct Answer:

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