Suppose That Firms Are Operating at a Point Where Marginal

Multiple Choice

Suppose that firms are operating at a point where marginal product of labor = 20,the nominal wage is $60,and the price level is $4.Because the real wage is ________ than the marginal product of labor,firms are hiring ________ workers.

A) less,too few
B) less,too many
C) greater,too few
D) greater,too many