If a profit-maximizing firm hires an additional unit of labor, what must be true about labor's wage and marginal revenue product?

a. Its wage always equals its marginal revenue product.
b. Its wage is always greater than its marginal revenue product.
c. Its wage is always total revenue minus marginal revenue product.
d. Its wage is always greater than or equal to its marginal revenue product.
e. Its wage is always less than or equal to its marginal revenue product.


E

Economics

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Indicate whether the statement is true or false

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If a firm triples all of its inputs and its output doubles, it is said to be experiencing

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Firms exist because of the low cost associated with creating complete contracts

Indicate whether the statement is true or false

Economics