In a Perfectly Competitive Labor Market, If the Value of Marginal

question 32

Multiple Choice

In a perfectly competitive labor market, if the value of marginal product of the last worker hired is $20 and the wage rate is $25, then the firm should:

• A)hire fewer workers.
• B)hire more workers.
• C)not change the number of workers it hires.
• D)either hire more or fewer workers, depending on the price of the firm's output.

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Definitions:

Product Life Cycle Shapes

The visual representation of the stages a product goes through from its introduction to the market until its decline, typically shown as a graph.

Characteristics

Distinctive traits, features, or qualities that define an individual, group, or object.

Brand Name

The name given to a product or service from a specific source, used to distinguish it from others in the market.

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