The optimal number of workers to be hired by a firm operating in a competitive labor market is where:

Name: The optimal number of workers to be hired by a firm operating in a competitive labor market is where:
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Question

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In a competitive labor market, a firm hires workers up to the point where the marginal revenue product (MRP) of labor equals the wage rate (w). This ensures that the cost of hiring an additional worker is equal to the revenue generated by that worker.

The Optimal Number of Workers to Be Hired by a Firm