The Following Table Shows the Marginal Revenue of a Firm

question 98

Multiple Choice

The following table shows the marginal revenue of a firm and the marginal physical product of different units of labor in a perfectly competitive labor market. Table 14.5
Note: Marginal revenue product of a resource is the product of MPP and MR.
In Table 14.5, at what wage rate would one worker be hired by a profit-maximizing firm?

• A)$10
• B)$25
• C)$30
• D)$50
• E)$100

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Definitions:

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