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If a Firm Is a Factor Price Taker in the Labor

Question 17

Multiple Choice

If a firm is a factor price taker in the labor market,


A) it must pay higher wages in order to hire additional workers.
B) it can hire all the workers it wants to at the going wage rate.
C) it must hire all workers who apply for a job.
D) it will continue to hire workers as long as MFC > MRP.

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