Which statement is true?

Question

Quizplus · Accepted Answer

All the statements provided are true in the context of labor economics and the theory of firm behavior. Statement A is true because if the marginal revenue product (MRP) of the last worker hired is higher than the wage rate, it means that the worker is generating more revenue for the firm than it costs to employ them, indicating that hiring additional workers could increase the firm's profit. Statement B is true because the demand for a factor of production, such as labor, is derived from the demand for the final product that the labor helps to produce. Statement C is true because a profit-maximizing firm will continue to hire additional units of a resource as long as the additional revenue generated by that resource (its MRP) is greater than or equal to its cost (its price).

Which Statement Is True