A firm will continue hiring labor as long as the MRP of labor ________ the market wage rate.
A) is greater than or equal to
B) is less than
C) is equal to
D) determines

Question

Quizplus · Accepted Answer

A firm will continue hiring labor as long as the marginal revenue product (MRP) of labor is greater than or equal to the market wage rate, because this indicates that the additional labor is still contributing positively to the firm's profits.

A Firm Will Continue Hiring Labor as Long as the MRP