Applied to perfectly competitive labor markets, the marginal principle tells firms to hire workers until

Name: Applied to perfectly competitive labor markets, the marginal principle tells firms to hire workers until
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The marginal principle in perfectly competitive labor markets states that firms will hire workers until the additional revenue generated by the last worker hired (marginal revenue product) equals the cost of hiring that worker (the wage). This maximizes profits for the firm.

Applied to Perfectly Competitive Labor Markets, the Marginal Principle Tells