It is profitable to hire units of labor as long as the value of marginal product:
A) is less than wage.
B) exceeds average product.
C) equals price.
D) exceeds wage.

Question

Quizplus · Accepted Answer

The value of marginal product must exceed the wage in order for hiring additional units of labor to be profitable. This means that the revenue generated by the additional output produced by each unit of labor must be greater than the cost of hiring that unit of labor.

It Is Profitable to Hire Units of Labor as Long