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

Question

Quizplus · Accepted Answer

Operating on the upward-sloping part of an MRP (Marginal Revenue Product) curve means the employer would be adding workers whose contribution to revenue is less than the cost of hiring them, thus not maximizing profits.

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