After hiring 151 units of the variable input, labor, a firm determines the mfc to be $.30 and the mrp to be $.33. the firm should group of answer choices increase the price of its product. decrease production of its output. increase the use of labor. produce 151 units. decrease the use of labor

Option (c) is correct.

Explanation:

Labor (Variable input) hired = 151 units

After hiring this much units of labor, a firm incurred:

Marginal cost of hiring (MFC) = $0.30 and marginal product of labor (MRP) = $0.33

The firm continuing hiring new labor until the point at which marginal cost of hiring labor is equal to the marginal product of labor.

In this case, MFC is less than the MRP, so firm should increase the use of labor till the MFC becomes equal to the MRP.

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the correct answer is:

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