If the MPP of an additional unit of labor is 4 units per hour, product price is constant at $5 per unit, and the wage rate is $19 per hour, then

A. The employer should lower wages and accept less employment of labor.
B. The additional unit of labor should be employed.
C. Product price must be reduced if profits are to be made.
D. The additional unit of labor should not be employed because it costs more than it is worth.


Answer: B

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