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Ajax Has Just Discovered That the Marginal Revenue Product Generated

Question 98

Multiple Choice

Ajax has just discovered that the marginal revenue product generated by the last worker hired was $75 while the marginal factor cost was $95. What should Ajax do?


A) Leave the level of production unchanged.
B) Increase the amount produced.
C) Reduce the amount produced.
D) Collect more information before making a decision.

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