Multiple Choice
Suppose a firm hires labor in a competitive labor market.When will hiring more labor increase the firm's profit?
A) When the marginal revenue product of labor exceeds the wage rate.
B) When the marginal product of labor is positive.
C) When the marginal labor cost is falling.
D) When the wage rate is less than the firm's marginal cost of production.
Correct Answer:
Verified
Correct Answer:
Verified
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