Value of the marginal product of labor exceeds the wage rate

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Reference no: EM131166707

Determine whether each statement below is TRUE or FALSE and explain your reasoning

1. If the value of the marginal product of labor exceeds the wage rate, then a competitive, profit-maximizing firm would want to hire less labor.

2. A competitive, cost-minimizing firm has the production function f (x,y)= x+ 2y and uses positive amounts of both inputs. If the price of x doubles and the price of y triples, then the cost of production will more than double.

Reference no: EM131166707

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