Suppose That a Competitive Firm Hires Labor Up to the Point

Multiple Choice

Suppose that a competitive firm hires labor up to the point at which the value of the marginal product equals the wage.If the firm pays a wage of $700 per week and the marginal product of labor equals 20 units per week,then the marginal cost of producing an additional unit of output is

A) $35
B) $70
C) $700
D) We do not have enough information to answer this question.