Figure 7-15   For a Firm at Equilibrium, at Point a in Figure

question 132

Multiple Choice

Figure 7-15  

For a firm at equilibrium, at point A in Figure 7-15,

• A)the price of labor is high relative to the price of machines.
• B)the MPP of labor is greater than the MPP of machines.
• C)the MPP of labor is less than at point B.
• D)output is higher than at point B.

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