Assume That the Going Wage for a Worker at a Competitive

question 262

Multiple Choice

Assume that the going wage for a worker at a competitive firm is $50 a day. If the marginal revenue product for the sixth worker is $45 a day, the

• A) sixth worker should be hired.
• B) firm is maximizing its profits.
• C) firm should hire fewer than six workers.
• D) competitive firm can change the wage rate.

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