We observe a profit-maximizing firm hiring its 51st employee.It is possible to infer that,when 50 employees are hired,the

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A profit-maximizing firm will hire employees up to the point where the value of the marginal product of labor (the additional output produced by hiring one more worker) is equal to the wage paid to that worker. If the firm is hiring its 51st employee, it means that the value of the marginal product of the 50th employee was greater than the wage paid to that employee. Otherwise, the firm would not have hired more workers. Therefore, option B is correct. Option A is incorrect because if the wage exceeded the value of the marginal product of labor, the firm would not have hired as many workers. Option C is not necessarily true since the marginal product of labor could be constant or decreasing. Option D is not related to the decision to hire the 51st employee.

We Observe a Profit-Maximizing Firm Hiring Its 51st Employee