Which of the following statements is correct? A) To increase its profit, the firm always increases its price. B) The firm first sets its profit-maximizing price p*, then the number of employees. C) The firm first decides on the number of employees, then it produces output according to labour productivity. D) Having chosen its profit-maximizing price p*, the firm would then set its nominal wage level

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Which of the following statements is correct?

A) To increase its profit, the firm always increases its price.
B) The firm first sets its profit-maximizing price p*, then the number of employees.
C) The firm first decides on the number of employees, then it produces output according to labour productivity.
D) Having chosen its profit-maximizing price p*, the firm would then set its nominal wage level.
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