Suppose there is a profit-maximising competitive firm.If it increases the number of workers it employs it will notice that the value of the marginal product of labour falling.
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Q3: If a factor market is competitive, then
Q4: A decrease in the price of milk
Q5: The quantity available of one factor of
Q5: A competitive profit-maximising firm hires workers up
Q6: Labour supply curves are always upward sloping.
Q9: The value of the marginal product curve
Q10: Assuming the standard criteria for profit maximisation,
Q11: The wage rate both balances the supply
Q12: To restore equilibrium, an increase in labour
Q13: Technological progress has led to a decrease
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