If the market for labor is perfectly competitive, the profit maximizing level of labor occurs where:

A) MRP_L < W (the wage) .
B) MRP_L = P (the output price) .
C) MRP_L just exceeds W.
D) MRP_L = W.
E) none of the above

Perfectly Competitive

A market structure characterized by a large number of small sellers and buyers, homogeneous products, and freedom of entry and exit.

Profit Maximizing

A process or strategy used by businesses to determine the best output and pricing levels in order to achieve the highest profit.

Labor

Human effort, both physical and mental, employed in the production of goods and services.