Table 18-1

-Refer to Table 18-1. A profit-maximising firm will hire workers as long as the value of the marginal product of labour equals or exceeds:

Question

Table 18-1
 
-Refer to Table 18-1. A profit-maximising firm will hire workers as long as the value of the marginal product of labour equals or exceeds:

Quizplus · Accepted Answer

The value of the marginal product of labour is the additional revenue generated by hiring one more worker. A profit-maximising firm will hire workers as long as the value of the marginal product of labour equals or exceeds the wage rate. In this case, the wage rate is $400, so the firm will hire workers as long as the value of the marginal product of labour is at least $400.

Table 18-1 -Refer to Table 18-1. a Profit-Maximising Firm Will Hire Workers