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If the Hourly Wage Is $50 and the Price of Output

Question 3

Multiple Choice

If the hourly wage is $50 and the price of output is $25,then,in the short run,


A) the firm should add workers if they add 1/2 or more units to output.
B) the firm should add workers if they add 2 or more units to output.
C) the firm should hire two workers.
D) the firm should reduce employment until the wage falls to $25.

Correct Answer:

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