Suppose the marginal resource cost of the tenth worker hired by a firm is $4 and the wage of the tenth worker is $3.The firm will hire ten workers if the marginal revenue product of the tenth worker is _____.
A)$1.
B)less than $3.
C)greater than or equal to $3.
D)greater than or equal to $4.
E)less than $4.

Question

Quizplus · Accepted Answer

The firm will hire the tenth worker if the marginal revenue product (MRP) of that worker is greater than or equal to the marginal resource cost (MRC), which is $4 in this case. This ensures that the revenue generated by the worker is at least equal to the cost of hiring them, making it a profitable decision for the firm.

Suppose the Marginal Resource Cost of the Tenth Worker Hired