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.
Answer:B
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.