A firm that wants to employ workers should a) hire workers as long as the wage is greater than...
Question:
A firm that wants to employ workers should
a) hire workers as long as the wage is greater than the value of the marginal product.
b) hire workers as long as the wage is less than the value of the marginal product.
c) not hire workers if the value of the marginal product is less than the wage.
Labor as a Factor of Production:
At the marketplace, labor is considered as one of the factors of production because it is used in the generation or production of output by the firm. Firms require labor in a specific quantity, which depends upon the level of output and cost of benefit from hiring a worker.
Answer and Explanation: 1
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View this answerThe correct option is: b) hire workers as long as the wage is less than the value of the marginal product.
Explanation:
A firm hires an additional...
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Marginal Product of Labor: Definition, Formula & Example
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Chapter 3 / Lesson 49
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Understand the meaning of marginal product of labor. Learn the marginal product of labor (MPL) formula, its significance, and how to calculate MPL with examples.
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