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    Macroeconomics Study Set 38
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    Exam 4: A Model of Production
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    If MPL\(\lt\) W, the Firm: A) Has the Optimal Amount of Labor
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If MPL <\lt< W, the Firm:
A) Has the Optimal Amount of Labor

Question 97

Question 97

Multiple Choice

If MPL <\lt< 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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