A firm operating in a purely competitive labor market has the marginal revenue product schedule shown in the table. If the wage rate decreases from $17 to $13, by how much will the firm expand employment?
A)5 workers
B)4 workers
C)3 workers
D)2 workers

Question

A firm operating in a purely competitive labor market has the marginal revenue product schedule shown in the table.  If the wage rate decreases from $17 to $13, by how much will the firm expand employment?
A)5 workers 
B)4 workers 
C)3 workers 
D)2 workers

Quizplus · Accepted Answer

The Answer of A firm operating in a purely competitive labor market has the marginal revenue product schedule shown in the table.  If the wage rate decreases from $17 to $13, by how much will the firm expand employment?
A)5 workers 
B)4 workers 
C)3 workers 
D)2 workers

A Firm Operating in a Purely Competitive Labor Market Has