One reason that firms hire labour at the point where w = MPN is A)if w MPN,the cost (w)of hiring additional workers is less than the benefits (MPN)of hiring them,so they should hire more workers. C)if w MPN,the cost (w)of hiring additional workers exceeds the benefits (MPN)of hiring them,so they should hire fewer workers.

Question

One reason that firms hire labour at the point where w = MPN is A)if w < MPN,the cost (w)of hiring additional workers exceeds the benefits (MPN)of hiring them,so they should hire fewer workers. B)if w > MPN,the cost (w)of hiring additional workers is less than the benefits (MPN)of hiring them,so they should hire more workers. C)if w < MPN,the cost (w)of hiring additional workers equals the benefits (MPN)of hiring them,so they have the right number of workers. D)if w > MPN,the cost (w)of hiring additional workers exceeds the benefits (MPN)of hiring them,so they should hire fewer workers.

Quizplus · Accepted Answer

Firms hire labor where w = MPN because if w > MPN, the cost of hiring additional workers exceeds the benefits, so they should hire fewer workers.

One Reason That Firms Hire Labour at the Point Where