Using standard economic theory,a firm should continue hiring workers until:
A) the marginal product of labour times price equals demand.
B) the quantity of labour supplied equals the quantity of labour demanded.
C) the marginal product of labour times price equals the workers' wage.
D) the marginal product of labour times the workers' wage equals price.

Question

Quizplus · Accepted Answer

The firm should continue hiring workers until the marginal product of labor times price equals the workers' wage. At this point, the firm is paying each worker exactly what they contribute to the company's output, ensuring that the firm is maximizing its profits.

Using Standard Economic Theory,a Firm Should Continue Hiring Workers Until