A firm operating in a purely competitive labor market has the following marginal revenue product schedule. If the wage rate decreases from $17 to $13,by how much will the firm expand employment? Refer To: 10-69
A) 5 workers
B) 4 workers
C) 3 workers
D) 2 workers At the wage rate of $17 the firm hires 4 workers.At the lower wage rate of $13 the firm hires 6 workers.In both cases the wage rate is below (or equal to)the MRP.

Question

A firm operating in a purely competitive labor market has the following marginal revenue product schedule.  If the wage rate decreases from $17 to $13,by how much will the firm expand employment? Refer To: 10-69
A) 5 workers 
B) 4 workers 
C) 3 workers 
D) 2 workers At the wage rate of $17 the firm hires 4 workers.At the lower wage rate of $13 the firm hires 6 workers.In both cases the wage rate is below (or equal to)the MRP.

Quizplus · Accepted Answer

The Answer of A firm operating in a purely competitive labor market has the following marginal revenue product schedule.  If the wage rate decreases from $17 to $13,by how much will the firm expand employment? Refer To: 10-69
A) 5 workers 
B) 4 workers 
C) 3 workers 
D) 2 workers At the wage rate of $17 the firm hires 4 workers.At the lower wage rate of $13 the firm hires 6 workers.In both cases the wage rate is below (or equal to)the MRP.

A Firm Operating in a Purely Competitive Labor Market Has