A firm should continue to hire workers until the:

Question

Quizplus · Accepted Answer

The firm should continue to hire workers until the MRP (Marginal Revenue Product) is equal to the market wage rate. This is because the MRP represents the additional revenue that each additional worker brings in for the firm, and the market wage rate represents the cost of hiring each worker. When the MRP is equal to the market wage rate, it means that the firm is getting the most value from each worker it hires. This is the point of maximum profit for the firm.

A Firm Should Continue to Hire Workers Until The