For the following alternatives, argue whether it is true, false or uncertain, according to the following statement: "If the marginal productivity value (MVP) of the last worker hired is $10 and the wage is $12, then the firm": (a) Will have an economic utility. b) Needs to decrease the wage c) It needs to expand production d) It needs to decrease the number of workers hired.

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
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For the following alternatives, argue whether it is true, false or uncertain, according to the following statement:
"If the marginal productivity value (MVP) of the last worker hired is $10 and the wage is $12, then the firm":
(a) Will have an economic utility.
b) Needs to decrease the wage
c) It needs to expand production
d) It needs to decrease the number of workers hired.

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