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    Macroeconomics Study Set 38
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    Exam 4: A Model of Production
  5. Question
    If MPK\(\gt\) R, the Firm: A) Should Hire More Labor
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If MPK >\gt> R, the Firm:
A) Should Hire More Labor

Question 110

Question 110

Multiple Choice

If MPK >\gt> r, the firm:


A) should hire more labor.
B) should hire more capital until MPK = 0.
C) should get rid of some capital until MPK = r.
D) should hire more capital until MPK = r.
E) has the optimal amount of capital.

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