Consider a profit-maximizing firm in a perfectly competitive market with several sellers and several buyers (i.e., the firm is a "price taker" of the hourly wages it pays its workers). If a technological innovation made by someone in this firm were to significantly raise the firm's marginal physical product (but not that of any other firm's), then this innovation would: (A) reduce the firm's employment level, because fewer workers are now needed (B) raise the workers' hourly wage as they now contribute more marginal revenue (C) lead the firm to hire more workers but not to raise their wages (D) lead the firm to hire more workers and to pay them higher wages (E) None of the above Only typed answer and don't use chat gpt
Consider a profit-maximizing firm in a
(A) reduce the firm's employment level, because fewer workers are now needed
(B) raise the workers' hourly wage as they now contribute more marginal revenue
(C) lead the firm to hire more workers but not to raise their wages
(D) lead the firm to hire more workers and to pay them higher wages
(E) None of the above
Only typed answer and don't use chat gpt
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