Refer to the above table. The marginal factor cost of labor is $200. To get the firm to hire 8 workers, the
A. firm must be able to reduce wages below the marginal factor cost.
B. eighth worker must be at least as productive as the seventh worker was.
C. price of the good must be $8.
D. wage rate must be a fraction of the marginal factor cost of labor.
Answer: C
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