Asked by
Samuel Yankuba
on Oct 25, 2024
Verified
A firm should hire more labor when the marginal revenue product of labor:
A) equals the wage rate.
B) exceeds the wage rate.
C) is less than the wage rate.
D) Any of these can be true.
E) None of these are true.
Marginal Revenue Product
The additional revenue generated from employing one more unit of a factor of production.
Wage Rate
The amount of money paid to an employee per unit of time or output, often expressed as an hourly rate.
- Comprehend how the marginal revenue product of labor affects firm decisions on labor hiring.
Verified Answer
VB
Learning Objectives
- Comprehend how the marginal revenue product of labor affects firm decisions on labor hiring.