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Given a Fixed Amount of Capital, a Firm Will Employ

Question 40

Multiple Choice

Given a fixed amount of capital, a firm will employ additional units of labor when labor's:


A) marginal product exceeds the wage rate
B) marginal revenue product exceeds labor's marginal product
C) marginal revenue product exceeds the wage rate
D) marginal product exceeds capital's marginal product
E) union tells them to quit

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