Suppose a firm is a price searcher in the product market and hires labor in a perfectly competitive labor market. If the wage rate is $20, the marginal product of the last worker hired is 5, and the firm is hiring the profit-maximizing amount of labor, then the marginal revenue from the last unit of output must be
a. $1
b. $1.50
c. $4
d. $5
e. $20
C
Economics
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An example of a monopoly is
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