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Because the Value of Marginal Product Diminishes as the Quantity

Question 138

Multiple Choice

Because the value of marginal product diminishes as the quantity of labor employed increases, the ________ the wage rate, the ________ workers the firm hires.


A) lower; more
B) higher; more
C) lower; fewer
D) None of the above answers is correct because there is no relationship between the wage rate and the number of workers hired.

Correct Answer:

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