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 $17.50 to $16.50, by how much will the firm expand employment?
A)3 workers
B)2 workers
C)1 worker
D)0 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 $17.50 to $16.50, by how much will the firm expand employment?
A)3 workers 
B)2 workers 
C)1 worker 
D)0 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 $17.50 to $16.50, by how much will the firm expand employment?
A)3 workers 
B)2 workers 
C)1 worker 
D)0 workers

A Firm Operating in a Purely Competitive Labor Market Has