To maximize profit,a competitive firm will hire workers up to the point of what intersection

Question

Quizplus · Accepted Answer

A competitive firm will hire workers up to the point where the value of marginal product (VMP) is equal to the wage rate. This is the point where the benefit from hiring an additional worker (VMP) equals the cost of hiring that worker (wage rate). This can be represented graphically by the intersection of the VMP curve and the wage line. Therefore, option B is the correct answer.

To Maximize Profit,a Competitive Firm Will Hire Workers Up to the Point