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A Firm Operating in a Purely Competitive Labor Market Has

Question 28

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 $17.50 to $16.50, by how much will the firm expand employment? A) 3 workers B) 2 workers C) 1 worker D) 0 workers If the wage rate decreases from $17.50 to $16.50, by how much will the firm expand employment?


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

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