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Employers Continue to Hire Until the Marginal Revenue of the Last

Question 3

Multiple Choice

Employers continue to hire until the marginal revenue of the last hire equals his or her wage rate.This is based on the first labor market theory assumption that:


A) markets are competitive.
B) pay rates reflect all costs of employment.
C) employers seek to maximize profits.
D) workers are homogeneous and interchangeable.

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