A profit maximizing firm will hire additional workers until
A) the additional cost associated with hiring the last worker equals the average wage rate of the workers.
B) the additional cost associated with hiring the last worker equals the additional revenue generated by that worker.
C) the extra revenue generated by the last worker hired equals zero.
D) the extra cost associated with hiring the last worker equals the price of the good produced.
Correct Answer:
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Q340: Q341: If a firm faces perfectly competitive product Q342: If a firm uses only capital and Q343: The profit maximizing combination of resources Q344: If a perfectly competitive firm is currently Q346: If a firm wants to maximize profits Q347: A firm that maximizes profits also Q348: To minimize total costs for a particular Q349: If the marginal physical product (MPP) of Q350: If a firm faces perfectly competitive product
A) usually
A) is
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