Suppose the MRP of a firm's 12 th worker is $22 and the worker's marginal wage cost is $16. We can say with certainty that the firm:
A. is hiring labor in a competitive labor market at a wage rate of $16.
B. is hiring labor in a monopsonistic labor market.
C. will find it profitable to hire fewer workers.
D. will find it profitable to hire more workers.
Answer: D
Economics
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What will be an ideal response?
Economics
The primary additional insight provided by expanding the theory of demand from two to three goods is that a pair of goods may now be:
a. gross substitutes. b. gross complements. c. net substitutes. d. net complements.
Economics