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Refer to the Following:
the Table Below Shows a Competitive Units of Labor Units of Output 33704490557066007620\begin{array}{ll} \text {Units of Labor }& \text {Units of Output }\\3 & 370 \\4 & 490 \\5 & 570 \\6 & 600 \\7 & 620\end{array}

Question 23

Multiple Choice

Refer to the following:
The table below shows a competitive firm's short-run production function. Labor is the firm's only variable input, and market price for the firm's product is $2 per unit.
Units of Labor Units of Output 33704490557066007620\begin{array}{ll} \text {Units of Labor }& \text {Units of Output }\\3 & 370 \\4 & 490 \\5 & 570 \\6 & 600 \\7 & 620\end{array}
-If the wage rate is $200, the firm should


A) shut down because average revenue product is $200, which is less than marginal revenue product.
B) shut down because average revenue product is $228, which is greater than the wage rate.
C) produce because average revenue product is $200, which is less than marginal revenue product.
D) produce because average revenue product is $245, which is greater than the wage rate.

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