The wage rate for widget makers is currently $25 per hour and Ajax hires 20 widget makers. If the wage rate were decreased to $20, what would happen to the marginal revenue product for labor at Ajax?
A) It would remain the same.
B) It would increase since Ajax's demand for labor curve will shift.
C) It would increase since the price of widgets would decrease.
D) It would decrease since Ajax will hire more workers.
D
Economics
You might also like to view...
There is a man yelling for help on a crowded subway platform. What are two reasons that the man may not get the help he needs?
What will be an ideal response?
Economics
If the exchange rate rises, domestic goods become relatively ______ expensive. This change in the affordability of domestic goods makes domestic goods _____ attractive to foreigners. So, _______ ______
Fill in the blank(s) with correct word
Economics