A competitive, profit-maximizing firm should hire workers up to the point where the

Question

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The value of the marginal product of labour represents the additional revenue generated by hiring an additional worker. A profit-maximizing firm will hire workers up to the point where the value of the marginal product of labour equals the wage, as hiring more workers would lead to diminishing marginal returns and a lower profit margin.

A Competitive, Profit-Maximizing Firm Should Hire Workers Up to the Point