A profit-maximizing firm will employ labor up to the point where the
A)MRP of labor = MRC of labor.
B)MP of labor = MRC of labor.
C)MC = MRP.
D)MP = MC.

Question

Quizplus · Accepted Answer

The profit-maximizing firm will employ labor up to the point where the Marginal Revenue Product (MRP) of labor equals the Marginal Resource Cost (MRC) of labor. This ensures that the last unit of labor employed adds as much to the firm's revenue as it does to its cost, maximizing profit.

A Profit-Maximizing Firm Will Employ Labor Up to the Point