When a profit- maximizing firm makes a decision to employ a worker, that decision is based on:

Question

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A profit-maximizing firm will base their decision to employ a worker on the individual contribution the worker makes to profit. Hiring a worker who adds more value to the company's profit will result in a higher profit for the firm. The total output produced by the firm and how much output the worker can produce are important considerations, but ultimately the decision is based on the worker's contribution to profit.

When a Profit- Maximizing Firm Makes a Decision to Employ