Figure: The Demand for Bricklayers (Figure: The Demand for Bricklayers) Look at the figure The Demand for Bricklayers.Which of the following statements is true?
A)Bricklayers should be hired whenever the value of the marginal product of bricklayers is greater than the market wage rate of bricklayers.
B)The profit-maximizing condition for firms hiring bricklayers is where VMPLbricklayers is less than the market wage rate.
C)The profit-maximizing condition for firms hiring bricklayers is where MPbricklayers equals the market wage rate.
D)Bricklayers should be hired whenever the market wage rate of bricklayers is greater than the value of the marginal product of bricklayers.

Question

Figure: The Demand for Bricklayers   (Figure: The Demand for Bricklayers) Look at the figure The Demand for Bricklayers.Which of the following statements is true?
A)Bricklayers should be hired whenever the value of the marginal product of bricklayers is greater than the market wage rate of bricklayers. 
B)The profit-maximizing condition for firms hiring bricklayers is where VMPLbricklayers is less than the market wage rate. 
C)The profit-maximizing condition for firms hiring bricklayers is where MPbricklayers equals the market wage rate. 
D)Bricklayers should be hired whenever the market wage rate of bricklayers is greater than the value of the marginal product of bricklayers.

Quizplus · Accepted Answer

According to the figure, firms should hire bricklayers whenever the value of the marginal product of bricklayers (VMPLbricklayers) is greater than the market wage rate of bricklayers. This is the profit-maximizing condition for firms in hiring workers. Therefore, statement (A) is true. Statements (B), (C), and (D) are incorrect.

Figure: the Demand for Bricklayers (Figure: the Demand