Suppose that a profit maximizing firm hires labor in a perfectly competitive labor market. If the marginal revenue product of labor is less than the wage,the firm shouldOa. both increase the wage rate and decrease the quantity of labor it hires.O b. decrease the wage rate.O c. both decrease the wage rate and increase the quantity of labor it hires.O d. decrease the quantity of labor it hires.O e. increase the quantity of labor it hires.O f. increase the wage rate.

In a perfectly competitive market there are large number of buyer and large number of sellers.…

Suppose that a profit maximizing firm hires labor in a perfectly competitive labor market. If the marginal revenue product of labor is less than the wage, the firm should ]a. both increase the wage rate and decrease the quantity of labor it hires. b. decrease the wage rate. c. both decrease the wage rate and increase the quantity of labor it hires. d. decrease the quantity of labor it hires. e. increase the quantity of labor it hires. f. increase the wage rate.

Suppose that a profit maximizing firm hires labor in a perfectly competitive labor market. If the marginal revenue product of labor is less than the wage, the firm should ]a. both increase the wage rate and decrease the quantity of labor it hires. b. decrease the wage rate. c. both decrease the wage rate and increase the quantity of labor it hires. d. decrease the quantity of labor it hires. e. increase the quantity of labor it hires. f. increase the wage rate.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter14: Labor Markets And Income

Section: Chapter Questions

Problem 1SCQ: Table 14.10 shows levels of employment (Labor), the marginal product at each of those levels, and...

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