Multiple Choice
A profit-maximizing firm will hire the variable input, labor, until the point where:
A) marginal product of labor is equal to the marginal revenue product of capital.
B) marginal revenue from each unit of output is equal to the wage rate.
C) marginal revenue product of labor is equal to the marginal cost of labor.
D) marginal revenue product of labor is equal to zero.
E) marginal product of labor equals the marginal revenue from each unit of output.
Correct Answer:
Verified
Correct Answer:
Verified
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