The optimal number of workers for a perfectly competitive firm to hire occurs when
A. diminishing marginal productivity is first experienced.
B. the wage rate equals the marginal product of the last worker.
C. the wage rate equals the value of marginal product of the last worker.
D. total labor cost equals total revenue.
Answer: C
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Figure 9.1 shows three aggregate demand curves. A movement from point b to point c could be caused by a(n)
A) decrease in government spending. B) decrease in the price level. C) decrease in taxes. D) increase in the money supply.
If France has a trade deficit, then
A) imports into France exceed exports from France. B) exports from France exceed imports into France. C) imports into the United States from France exceed exports from the United States into France. D) imports into France from the United States exceed exports from France into the United States.