A profit maximizing sports club will hire players up to the point where the

Question

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The profit maximizing sports club will hire players up to the point where the marginal revenue product of labor equals the marginal cost of labor. This ensures that the club is getting the maximum benefit from each additional unit of labor and is not paying more than necessary for each unit of labor. Option A is not correct because demand for labor does not necessarily equal marginal revenue product of labor. Option B is not correct because the supply of labor is not typically fixed at a certain level, and the club would not only hire up to the point where supply equals marginal cost. Option D is not correct because marginal cost of labor is not typically equal to the wage rate, since other costs like training and equipment are also included in the marginal cost. Option E is not correct because the relationship between wage and quantity of labor available is not necessarily linear.

A Profit Maximizing Sports Club Will Hire Players Up to the Point