Suppose a profit-maximizing firm hires labour in a competitive labour market. If the value of marginal product of labour is greater than the wage rate, the firm should
A) increase the wage rate.
B) decrease the wage rate.
C) increase the quantity of labour it hires.
D) decrease the quantity of labour it hires.
E) shift to a more labour-intensive production process.
Correct Answer:
Verified
Q21: Suppose a profit-maximizing firm hires labour in
Q22: The demand for a factor of production
Q23: The demand curve for labour will shift
Q24: Mr. Smith's firm competes in a perfectly
Q25: Use the table below to answer the
Q27: A technological change that increases the value
Q30: The demand curve for labour will shift
Q30: A shift in a firm's demand curve
Q31: A shift in a firm's demand curve
Q34: A firm's value of marginal product of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents