If the MPP of an Additional Unit of Labor Is

question 92

Multiple Choice

If the MPP of an additional unit of labor is 4 units per hour,product price is constant at $5 per unit,and the wage rate is $19 per hour,then

• A)The additional unit of labor should be employed.
• B)The additional unit of labor should not be employed because it costs more than it is worth.
• C)The employer should lower wages and accept less employment of labor.

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