Asked by
Michael Falodun
on Oct 26, 2024
Verified
To maximize profits,a firm will employ workers until for the last worker employed:
A) marginal product of labor is equal to the nominal wage rate.
B) the value of the marginal product of labor is equal to the wage rate.
C) the value of the marginal product of labor is equal to the price per unit of output.
D) the value of the marginal product of labor is as high as possible.
Nominal Wage Rate
The amount of money paid per hour, day, or other unit of work, without adjusting for inflation.
Profit-maximizing
The method or approach of modifying production and sales to maximize profits.
Output
The total amount of goods or services produced by a company, industry, or economy.
- Review how hiring decisions in firms are influenced by the assessment of marginal product value against wage rates.
Verified Answer
VP
Learning Objectives
- Review how hiring decisions in firms are influenced by the assessment of marginal product value against wage rates.
Related questions
José,a Corn Farmer Operating in a Perfectly Competitive Market,pays His ...
A Profit-Maximizing Firm Will Base Its Decision to Hire Workers ...
Barry's Brewpub Is Considering Hiring More Brewmasters ...
Barry's Brewpub Is Considering Hiring More Brewmasters ...
A Profit-Maximizing Firm Will Hire Workers Up to the Quantity ...