Multiple Choice
Suppose a profit-maximizing firm hires labour in a competitive labour market.If the value of marginal product of labour of the last worker hired is less than the wage rate,the firm
A) increases the wage rate.
B) decreases the wage rate.
C) increases the quantity of labour it hires.
D) decreases the quantity of labour it hires.
E) shuts down.
Correct Answer:
Verified
Correct Answer:
Verified
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