In Theory, If a Profit-Maximizing Firm in a Perfectly Competitive

question 36

Multiple Choice

In theory, if a profit-maximizing firm in a perfectly competitive labor market found it advantageous to hire one less worker, the firm should pay a

• A) lower wage rate but only to the most recently hired workers.
• B) higher wage rate but only to the most recently hired workers.
• C) lower wage rate to all previous workers hired.
• D) higher wage rate to all previous workers hired.

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