Multiple Choice
A profit-maximizing firm will base its decision to hire additional labor on the marginal decision rule: If the extra output that is produced by hiring one more unit of labor adds more to _______ than to _______ , the firm will increase its profit by increasing the use of labor.
A) total cost; total revenue
B) total revenue; total cost
C) marginal cost; marginal revenue
D) marginal revenue; marginal cost
Correct Answer:
Verified
Correct Answer:
Verified
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