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AP Microeconomics/Unit 5: Factor Markets
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Marginal Revenue Product and Hiring Decision

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A perfectly competitive firm has a marginal revenue product (MRP) function given by MRP=100−2∗LMRP = 100 - 2*L, where L represents the number of workers employed. If the equilibrium wage is $60, how many workers should the firm hire? (Consider the Lorenz curve above as contextual information regarding income distribution.)

A

30

B

10

C

20

D

40

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