Multiple Choice
A profit maximizing firm that is a price taker in both product and factor markets will hire a factor up to the point at which
A) the last unit of the factor hired adds as much to costs as it does to revenues.
B) the value of marginal product equals the wage rate.
C) the marginal revenue product equals the wage rate.
D) all of the above
E) a and b
Correct Answer:
Verified
Correct Answer:
Verified
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