Purely competitive product market


A firm in a purely competitive product market finds it must increase wages to attract extra workers. The firm will hire labor up to the point where the marginal:

a) Product of labor equals the wage rate.

b) Revenue product of labor equals the wage rate.

c) Revenue product of labor starts to decline.

d) Revenue product equals the cost of hiring an extra worker.

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Microeconomics: Purely competitive product market
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