(Solution) - We showed above that a profit maximizing firm will hire the -(2025 Original AI-Free Solution)
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We showed above that a profit-maximizing firm will hire the number of workers such that the wage is equal to the value of the marginal product of labor. But, as the text showed in an earlier chapter, a profit-maximizing firm will produce the quantity of output such that price equal marginal cost. Are these two rules inconsistent?