Asked by
brooke cormier
on Nov 06, 2024
Verified
If the wage rate is greater than the marginal revenue product of labor, the firm should ________ to maximize profits.
A) hire less labor and produce less output
B) hire less labor and produce more output
C) hire more labor and produce less output
D) hire more labor and produce more output
Marginal Revenue Product
The additional revenue generated by employing one more unit of a resource, such as labor or capital.
- Determine and describe the notion of marginal revenue product (MRP), alongside its relevance to employment determinations.
- Acquire an understanding of the strategy used by businesses to decide on hiring based on the marginal revenue product of labor.
Verified Answer
OF
Learning Objectives
- Determine and describe the notion of marginal revenue product (MRP), alongside its relevance to employment determinations.
- Acquire an understanding of the strategy used by businesses to decide on hiring based on the marginal revenue product of labor.