Agec 105 Fall 2013 Test 2 Answer Key - Texas A&M University
(a) A firm in perfect competition should hire an additional worker if marginal value product is greater than or equal to the wage rate. (b) In the short run, a firm should shut down if it cannot cover minimum average variable costs of production. (c) Firms operating in a perfectly competitive market structure produce a homogenous product. ................
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