When MFC < MRP, a firm in a competitive market will

A) stop hiring.
B) hire more workers.
C) earn fewer profits.
D) layoff workers.


B

Economics

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What will be an ideal response?

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The market demand for a good is determined by horizontally summing the demand curves of individual consumers

Indicate whether the statement is true or false

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Which of the following is an equilibrium condition for the goods market?

A) M = kPQ B) Desired saving and desired investment C) Money demand = money supply D) IS = LM

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In which of the following situations is the absolute price elasticity of demand for an item most likely to exceed a value of 1?

A) when there are very few close substitutes for the item B) when there are very few producers of the item C) when the item's share of expenses in consumers' budgets is very small D) when there is considerable time to adjust to a change in the price of the item

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