When a firm is hiring the optimal amount of labor, the change in total labor cost divided by the change in labor employed is equal to

Name: When a firm is hiring the optimal amount of labor, the change in total labor cost divided by the change in labor employed is equal to
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Question

Quizplus · Accepted Answer

The change in total labor cost divided by the change in labor employed equals the wage rate. This is because the total labor cost increases by the wage rate for each additional unit of labor employed.

When a Firm Is Hiring the Optimal Amount of Labor