When a profit-maximizing firm makes a decision to employ a worker,that decision is based on:

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A profit-maximizing firm will base its decision to employ a worker on the individual contribution that the worker makes to the profit of the firm. This means that the firm will hire a worker if the marginal revenue generated by that worker is greater than the cost of hiring them. The firm will not consider familial relationships or the total output produced by the firm, but will instead focus on the contribution made by each individual worker. The average productivity of the labor force may be a factor considered by the firm, but ultimately the decision will be based on the individual contribution of the worker being hired.

When a Profit-Maximizing Firm Makes a Decision to Employ a Worker,that