A Competitive Employer Is Using Labor in Such an Amount

Multiple Choice

A competitive employer is using labor in such an amount that labor's MRP is $10 and its wage rate is $8. This firm

A) should hire more labor because this will increase profits.
B) should hire more labor, although this may either increase or decrease profits.
C) is currently hiring the profit-maximizing amount of labor.
D) is selling its product in an imperfectly competitive market.