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    Macroeconomics Study Set 2
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    Exam 4: Consumer and Firm Behavior: The Work-Leisure Decision and Profit Maximization
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    When the Representative Firm Maximizes Profits
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When the Representative Firm Maximizes Profits

Question 22

Question 22

Multiple Choice

When the representative firm maximizes profits,


A) it sells as much as possible.
B) the wage equals average labor productivity.
C) the wage equals marginal labor productivity.
D) business taxes must be zero.

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