Because the Value of Marginal Product Diminishes as the Quantity

question 38

Multiple Choice

Because the value of marginal product diminishes as the quantity of labour employed increases, the _______ the wage rate, the _______ workers the firm hires.

• A) higher; more
• B) lower; more
• C) lower; fewer
• D) None of the above answers is correct because there is no relationship between the wage rate and the number of workers hired.

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