A firm competing in a perfectly competitive labor market desires to maximize
A) marginal profit, not total profit.
B) total profit, not marginal profit.
C) marginal profit, not average profit.
D) average profit, not marginal profit.

Question

Quizplus · Accepted Answer

In a perfectly competitive labor market, a firm aims to maximize total profit rather than focusing on marginal profit, average profit, or any other measure. Total profit maximization ensures the firm is making the most out of its resources and market position.

A Firm Competing in a Perfectly Competitive Labor Market Desires