Multiple Choice
If a firm is a price taker in both the labor market and the output market,it will
A) earn zero economic profit in the short run.
B) hire labor until the marginal product of labor equals zero.
C) hire labor until the marginal revenue product equals the output price.
D) hire labor until the marginal revenue product equals the wage rate.
Correct Answer:
Verified
Correct Answer:
Verified
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