Multiple Choice
If a profit-maximizing firm hires an additional unit of labor, what must be true about labor's wage and marginal revenue product?
A) Its wage always equals its marginal revenue product.
B) Its wage is always greater than its marginal revenue product.
C) Its wage is always total revenue minus marginal revenue product.
D) Its wage is always less than or equal to its marginal revenue product.
Correct Answer:
Verified
Correct Answer:
Verified
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