One Reason That Firms Hire Labor at the Point Where

question 60

Multiple Choice

One reason that firms hire labor at the point where w = MPN is

• A)if w < MPN, the cost (w)of hiring additional workers exceeds the benefits (MPN)of hiring them, so they should hire fewer workers.
• B)if w > MPN, the cost (w)of hiring additional workers is less than the benefits (MPN)of hiring them, so they should hire more workers.
• C)if w < MPN, the cost (w)of hiring additional workers equals the benefits (MPN)of hiring them, so they have the right number of workers.
• D)if w > MPN, the cost (w)of hiring additional workers exceeds the benefits (MPN)of hiring them, so they should hire fewer workers.

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