Multiple Choice
Suppose a profit-maximizing firm hires labour in a competitive labour market. If the value of marginal product of labour is greater than the wage rate, the firm should
A) increase the wage rate.
B) decrease the wage rate.
C) increase the quantity of labour it hires.
D) decrease the quantity of labour it hires.
E) shift to a more labour-intensive production process.
Correct Answer:
Verified
Correct Answer:
Verified
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