If the extra output that is produced by hiring one more unit of labor adds more to _____ than to _____,the firm will increase its profit by increasing the use of labor.
A)total cost;total revenue
B)total revenue;total cost
C)marginal cost;marginal revenue
D)marginal product;marginal cost

Question

Quizplus · Accepted Answer

When the extra output from hiring one more unit of labor adds more to total revenue than it does to total cost, the firm's profit increases because it is generating more revenue from the additional labor than the cost of that labor.

If the Extra Output That Is Produced by Hiring One