If a competitive firm faces a competitive labor market,it will hire labor until
A) w = p.
B) w = MPL.
C) w = MPL ∗ p.
D) MPL = 0.

Name: If a competitive firm faces a competitive labor market,it will hire labor until A) w = p. B) w = MPL. C) w = MPL ∗ p. D) MPL = 0.
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Question

Quizplus · Accepted Answer

A competitive firm will hire labor until the wage (w) equals the marginal product of labor (MPL) times the price of the output (p), which is the value of the marginal product of labor.

If a Competitive Firm Faces a Competitive Labor Market,it Will