Should leave employment unchanged

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Reference no: EM13998569

Assume that for the last worker hired MPL=4, MR=2, and W=4, and if one more worker is hired MPL=3, MR=2, and W=4. Given this information, the firm

(a) should decrease employment

(b) should increase employment

(d) without information on the marginal revenue product, it is impossible to say what the firm should do.

Reference no: EM13998569

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