If the additional revenue from hiring an additional worker equals the additional costs from hiring the extra worker, then we know that

Question

Quizplus · Accepted Answer

MRPL (marginal revenue product of labor) measures the additional revenue generated by hiring an additional worker, and MFC (marginal factor cost) measures the additional cost of hiring an additional worker. When MRPL equals MFC, the firm has reached an optimal level of employment because any additional worker hired would add more to the firm's costs than it contributes to revenue. Therefore, the correct choice is C.

If the Additional Revenue from Hiring an Additional Worker Equals