A firm will employ an additional unit of labor as long as the employment of labor adds more to the firm's revenue than it does to the firm's:

Question

Quizplus · Accepted Answer

The firm will only employ an additional unit of labor if the revenue generated by that additional worker is greater than the cost of employing that worker. Therefore, the correct answer is D, as the employment of labor must add more to the firm's revenue than it does to the firm's cost. Choices A, B, and C are incorrect because they do not take into account the cost of the labor, which is necessary to determine whether employing an additional unit of labor is profitable for the firm.

A Firm Will Employ an Additional Unit of Labor as Long