Answer the question on the basis of the following information: Suppose a firm hi

Question

Answer the question on the basis of the following information: Suppose a firm hires both labor (L) and capital (C) under purely competitive conditions. The price of labor is PL and that of capital is PC. The marginal product of labor is MPL and that of capital is MPC. The firm sells its product competitively at a price of PX

is equal to PL × MPL.

is equal to MPL/PL.

is equal to PL.

cannot be determined from the information given

is equal to PL × MPL.

is equal to MPL/PL.

is equal to PL.

cannot be determined from the information given

Explanation / Answer

First thing is what is the question here? it is not understood.

secondly. if the question is what is the marginal cost of additional labor, the the answer is: equal to PL.

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