An employer would never operate on the upward-sloping part of an MRP curve because
A)he would not be maximizing profits.
B)he would be hiring workers at wages above MRP.
C)the number of workers is too large to get economies of scale.
D)he would then have too little capital per worker.

Question

Quizplus · Accepted Answer

Operating on the upward-sloping part of the MRP curve means that the employer is not maximizing profits, as they could hire additional workers to increase total revenue without increasing costs proportionately.

An Employer Would Never Operate on the Upward-Sloping Part of an MRP