It will be profitable for a firm to hire additional units of any resource up to the point at which its MRP is equal to its MRC.

Question

Quizplus · Accepted Answer

A firm will find it profitable to hire additional units of a resource as long as the marginal revenue product (MRP) of the resource is equal to or greater than the marginal resource cost (MRC). Hiring beyond this point, where MRP < MRC, would not be profitable.

It Will Be Profitable for a Firm to Hire Additional