If the marginal product of labor is less than the nominal wage divided by the price of output, a firm that wishes to maximize profits will raise the real wage. Ⓒhire more labor. maintain its current level of workers. Ⓒlay off workers.

If the marginal product of labor is less than the nominal wage divided by the price of output, a firm that wishes to maximize profits will raise the real wage. Ⓒhire more labor. maintain its current level of workers. Ⓒlay off workers.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter11: Labor Markets

Section: Chapter Questions

Problem 6SQ

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Question

If the marginal product of labor is less than the nominal wage divided by the price of output, a firm that wishes to maximize profits will
raise the real wage.
hire more labor.
maintain its current level of workers.
Olay off workers.

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