To maximize profit, a competitive firm hires workers up to the point of intersection of the

Question

Quizplus · Accepted Answer

A competitive firm maximizes profit by hiring workers up to the point where the value of the marginal product of labor equals the wage rate. This is because the value of the marginal product curve represents the additional revenue the firm earns from hiring one more worker, and the wage is the cost of hiring that worker.

To Maximize Profit, a Competitive Firm Hires Workers Up to the Point