Advanced Placement (AP), 02.09.2021 16:00 Worksmarter72641
A firm in a perfectly competitive labor market is employing labor where the marginal revenue product of the last unit is $25 and the marginal factor cost is $30. Based on this, the firm should (3 points)
employ more units of labor
employ fewer units of labor
employ the same amount of labor
lower its offered wage for labor
increase its offered wage for labor
Answers: 2
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