A firm will find it profitable to hire workers up to the point at which their
A)marginal resource cost equals their wage rate.
B)wage rate equals product price.
C)MP is equal to their MRP.
D)marginal resource cost is equal to their MRP.

Question

Quizplus · Accepted Answer

The firm will find it profitable to hire workers up to the point where the cost of hiring an additional worker (marginal resource cost, MRC) equals the additional revenue generated by that worker (marginal revenue product, MRP). This ensures that the firm is maximizing its profit by equating the cost of additional resources to the revenue those resources generate.

A Firm Will Find It Profitable to Hire Workers Up