Say a firm that sells its product at a price of $20 is using 20 units of labor. If the marginal product of the last unit of labor hired was 10, and the firm pays each worker a wage of $40, then this firm should
A) hire more workers.
B) decrease the number of workers.
C) keep the same number of workers.
D) decrease its output.
Correct Answer:
Verified
Q1: The hiring rule for the perfect competitor
Q2: We see a backward-bending labor supply curve
Q4: The value of the marginal product of
Q5: If the marginal product of the fifth
Q6: The market supply curve for any particular
Q7: The upward sloping portion of the supply
Q8: The market demand for labor is
A)steeper than
Q9: The demand for labor curve will be
Q10: The market demand for labor is
A)more elastic
Q11: The "backward bending" portion of the labor
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