A Firm That Is Hiring Labor in a Purely Competitive

question 58

Multiple Choice

A firm that is hiring labor in a purely competitive labor market and selling its product in a purely competitive product market will maximize its profit by hiring labor until

• A) marginal revenue product is zero.
• B) marginal revenue product exceeds marginal resource (labor) cost by the greatest amount.
• C) marginal resource cost is zero.
• D) marginal revenue product equals marginal resource (labor) cost.

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Definitions:

Universal

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