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A Perfectly Competitive Firm Should Hire an Additional Worker Only

Question 2

Multiple Choice

A perfectly competitive firm should hire an additional worker only if:


A) total revenue is less than total cost.
B) the worker's marginal revenue product is less than the wage rate.
C) the worker's marginal product falls.
D) the worker's marginal product rises.
E) the worker's marginal revenue product exceeds the wage rate.

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