Economics (AS & A Level) · Oct / Nov 2024 · Paper 32 · Question 14
9708Labour market forces and government intervention
A firm operates in a perfectly competitive labour market. The table shows the marginal revenue product (MRP) and marginal cost of labour (MCL) for each additional worker employed by this profit-maximising firm. | units of labour employed | MRP | MCL | |---|---|---| | 1 | 50 | 30 | | 2 | 40 | 30 | | 3 | 30 | 30 | | 4 | 20 | 30 | How many units of labour will this firm employ?
- A1
- B2
- C3
- D4
As printed in the paper
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Correct answer: C. 3
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