The Rational Rule for Employers implies that they keep hiring until

Question

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The Rational Rule for Employers states that they should keep hiring until the wage equals the marginal revenue product of the last worker hired. This means that the employer should continue to hire workers as long as the additional benefit of the last worker hired (measured by their marginal revenue product) is greater than or equal to the additional cost (the wage paid to that worker). Once the two are equal, it is no longer profitable to hire additional workers.

The Rational Rule for Employers Implies That They Keep Hiring