If MRP < MLC, the firm
a. is employing the optimal quantity of workers
b. should decrease the quantity of labor it employs
c. should lower the wage rate
d. should increase the quantity of labor it employs
e. should raise the wage rate
B
Economics
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Refer to the diagrams, which pertain to monopolistically competitive firms. A short-run equilibrium entailing economic profits is shown by:
A. diagram a only.
B. diagram b only.
C. diagram c only.
D. both diagrams b and c.
Economics
Refer to the data provided in Table 10.1 below to answer the following question(s).
Table 10.1 
Refer to Table 10.1. If the payment to labor per day is $100, this T-shirt manufacturer is maximizing profits if he will hire ________ employee(s).
A. one B. two C. four D. five
Economics