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    Microeconomics Theory and Applications
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    Exam 15: Factor Markets
  5. Question
    In the Long Run,a Competitive Firm Has a Marginal Product
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In the Long Run,a Competitive Firm Has a Marginal Product

Question 2

Question 2

Multiple Choice

In the long run,a competitive firm has a marginal product of labor,MPL = L⁻¹.The output price is $20 per unit and the wage is $7.25 per hour.The long-run labor demand curve for the firm is


A) 20 L⁻⁰.⁰⁵.
B) 7.25L⁻⁰.⁰⁵.
C) 20L⁻¹
D) 7.25L⁻¹.

Correct Answer:

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