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If the Wage Rate Exceeds the Value of Marginal Product,a

Question 45

Multiple Choice

If the wage rate exceeds the value of marginal product,a firm


A) is maximizing its profit.
B) can increase its profit by hiring more workers.
C) can increase its profit by firing some workers.
D) can increase its profit by increasing the wage rate and not changing its employment.
E) can increase its profit by increasing the wage rate and increasing its employment.

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