Use Figure: Marginal Revenue Product and Labor Demand. The figure shows the marginal revenue product per hour of labor for a competitive firm. If the firm currently is hiring 30 workers and the competitive wage is $8, then the firm should _____ the number of workers to ______ in order to maximize profit.
Figure: Marginal Revenue Product and Labor Demand
A) increase; 40
B) increase; 50
C) decrease; 20
D) decrease; 10
Correct Answer:
Verified
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