To maximize profit, firms should hire workers up to the point where:

Question

Quizplus · Accepted Answer

The optimal point of hiring workers is where the marginal product of labor (MPL) multiplied by the market wage rate (W) is equal to the price of the output (P). This is because at this point, the additional output produced by each additional worker is equal to the additional cost incurred in hiring that worker, leading to maximum profit. Therefore, choice C is the correct answer.

To Maximize Profit, Firms Should Hire Workers Up to the Point