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If a Firm's Marginal Product of Labor Is Currently 75

Question 10

Multiple Choice

If a firm's marginal product of labor is currently 75 units of output,the wage is $15 per unit of labor,and output sells for $0.80 per unit,the firm should


A) shut down production
B) hire fewer workers
C) maintain its current workforce, but at fewer hours per worker
D) keep the current number of employees and hours worked
E) hire more labor

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