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The Table Below Shows a Competitive Firm's Short-Run Production Function

Question 69

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The table below shows a competitive firm's short-run production function.Labor is the firm's only variable input,and market price for the firm's product is $2 per unit. The table below shows a competitive firm's short-run production function.Labor is the firm's only variable input,and market price for the firm's product is $2 per unit.   If the wage rate is $200,the firm should A) shut down because average revenue product is $200,which is less than marginal revenue product. B) shut down because average revenue product is $228,which is greater than the wage rate. C) produce because average revenue product is $200,which is less than marginal revenue product. D) produce because average revenue product is $245,which is greater than the wage rate. If the wage rate is $200,the firm should


A) shut down because average revenue product is $200,which is less than marginal revenue product.
B) shut down because average revenue product is $228,which is greater than the wage rate.
C) produce because average revenue product is $200,which is less than marginal revenue product.
D) produce because average revenue product is $245,which is greater than the wage rate.

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