In order to maximize its profits, a firm that hires workers in a perfectly competitive labor market will hire workers until the:
A. extra revenue generated from hiring another worker equals the extra cost of hiring that worker.
B. the marginal wage rate equals marginal product of the last worker.
C. extra revenue generated from hiring another worker equals the extra profit from hiring that worker.
D. the marginal product of labor begins to decline.
Answer: A
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A) trends in two variables; unrelated variables B) relationship between two variables; a trend in a variable C) cross-section relationship; a general tendency for the variables to rise or fall D) trend in a variable; a general tendency for the variable to rise or fall E) relationship between two variables; a cross-section relationship
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With respect to Figure 3.1, the classicists argued that
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_____ have the ability to recognize constraints and may choose to incur the costs of altering them
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