Multiple Choice
José,a corn farmer operating in a perfectly competitive market,pays his workers $8 an hour.At his current level of labor use,the marginal product of an additional hour of labor is three bushels of corn.The market price of corn is $2.75.To maximize his profits,Jose should:
A) hire more labor.
B) hire less labor.
C) not change the amount of labor.
D) This question cannot be answered without knowing the average product of labor.
Correct Answer:

Verified
Correct Answer:
Verified
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