Assume that a profit maximizing perfectly competitive firm hires labour in a perfectly competitive labour market. If the market wage rate is $12 per hour and the price of the product produced is $3 per unit, the firm will: hire another worker if the output per hour of the additional worker exceeds 4 units. not hire any workers since the cost of labour is greater than the price of the output. hire more workers if each worker can produce 3 units per hour hire fewer workers

Assume that a profit maximizing perfectly competitive firm hires labour in a perfectly competitive labour market. If the market wage rate is $12 per hour and the price of the product produced is $3 per unit, the firm will: hire another worker if the output per hour of the additional worker exceeds 4 units. not hire any workers since the cost of labour is greater than the price of the output. hire more workers if each worker can produce 3 units per hour hire fewer workers

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 3CQQ

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