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Suppose That the MRPL for a Competitive Firm Is Currently

Question 85

Multiple Choice

Suppose that the MRPL for a competitive firm is currently $50 and the hourly cost of labour is $40.Which of the following is the correct action for the firm?


A) Since the firm must be profitable,it need not do anything.
B) The firm should hire more labour.
C) The firm should substitute labour for capital.
D) The firm should raise the wage rate of its labour.

Correct Answer:

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