L Let MP marginal product of labor, P = output price, and W- wage, then the equation that represents the condition where a competitive firm would hire another worker is P × MP=W. O P × MP < W, O P × W >: MP. O P × MP > W.

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Chapter10: Labor Market And Income Distribution
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Let MP marginal product of labor, P = output price, and W- wage, then the equation that
represents the condition where a competitive firm would hire another worker is
O<i>P</i> &#215; <i>MP</i><i>W</i>.
<i>P</i> &#215; <i>MP</i> &lt; <i>W</i>.
O<i>P</i> &#215; <i>W</i> &gt: <i>MP</i>.
<i>P</i> &#215; <i>MP</i> &gt: <i>W</i>.
Transcribed Image Text:B Let MP marginal product of labor, P = output price, and W- wage, then the equation that represents the condition where a competitive firm would hire another worker is O<i>P</i> &#215; <i>MP</i><i>W</i>. <i>P</i> &#215; <i>MP</i> &lt; <i>W</i>. O<i>P</i> &#215; <i>W</i> &gt: <i>MP</i>. <i>P</i> &#215; <i>MP</i> &gt: <i>W</i>.
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