A perfectly competitive firm will hire workers up to the quantity at which the wage rate equals the

Question

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A perfectly competitive firm will hire workers up to the point at which the wage rate equals the marginal revenue product of labor. This is because in a perfectly competitive labor market, the firm is a price taker and cannot influence the wage rate. Therefore, the firm will hire workers up to the point where the marginal revenue product of labor equals the wage rate, in order to maximize profits.

A Perfectly Competitive Firm Will Hire Workers Up to the Quantity