The Decision Rule for a Profit-Maximizing Firm Operating in a Competitive

Multiple Choice

The decision rule for a profit-maximizing firm operating in a competitive market to hire an additional worker is that the value of the ________.

A) marginal product of the worker should be equal to or greater than the wage rate
B) marginal product of the worker should be equal to or less than the wage rate
C) average product of the worker being hired should be equal to the wage rate
D) average product of the worker being hired should be less than the wage rate