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A Firm Operating in a Purely Competitive Labor Market Has

Question 3

Multiple Choice

A firm operating in a purely competitive labor market has the marginal revenue product schedule shown in the table. A firm operating in a purely competitive labor market has the marginal revenue product schedule shown in the table. If the wage rate decreases from $22.50 to $21.50, by how much will the firm expand employment? A) 2 workers B) 3 workers C) 0 workers D) 1 worker If the wage rate decreases from $22.50 to $21.50, by how much will the firm expand employment?


A) 2 workers
B) 3 workers
C) 0 workers
D) 1 worker

Correct Answer:

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