Suppose That Firms Are Operating at a Point Where Marginal

question 102

Multiple Choice

Suppose that firms are operating at a point where marginal product of labor = 20,the nominal wage is $60,and the price level is $4.Because the real wage is ________ than the marginal product of labor,firms are hiring ________ workers.

• A)less,too few
• B)less,too many
• C)greater,too few
• D)greater,too many

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Definitions:

Innovative Solutions

Novel and creative answers to problems or challenges that improve processes, methodologies, or technologies.

Improved Quality

Improved quality involves enhancements in the standard or grade of products or services to meet or exceed customer expectations.

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An individual who starts, operates, and assumes the risk of a business venture, aiming to transform innovations into economic goods.

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