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    Macroeconomics Study Set 30
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    Exam 4: A Model of Production
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    If MPL < W, the Firm
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If MPL < W, the Firm

Question 12

Question 12

Multiple Choice

If MPL < w, the firm:


A) has the optimal amount of labor
B) should fire some labor until MPL = w
C) should fire some labor until MPL = 0
D) should hire more capital until MPK = 0
E) should hire more capital until MPL = w

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