The figure represents the value of marginal product for a firm that sells its product in a competitive market.
Figure 18-1

-Refer to Figure 18-1.If a firm were employing fewer than Q* workers,hiring more workers would

Question

The figure represents the value of marginal product for a firm that sells its product in a competitive market.
Figure 18-1
 
-Refer to Figure 18-1.If a firm were employing fewer than Q* workers,hiring more workers would

Quizplus · Accepted Answer

Hiring more workers when employing fewer than Q* would increase profit because the marginal product of labor is likely still above the marginal cost of labor, meaning additional workers contribute more to revenue than they cost.

The Figure Represents the Value of Marginal Product for a Firm