Multiple Choice
A company finds that the value of marginal product for the current level of employment is $53 and the wage rate is $53. Which of the following is correct?
A) The firm is employing the profit-maximising quantity of labour.
B) Too much labour is currently employed and the firm will lay off some workers.
C) Too few workers are currently employed and the firm will hire more workers.
D) The firm should shut down and produce nothing.
E) More information about the price of the product is needed.
Correct Answer:
Verified
Correct Answer:
Verified
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