Multiple Choice
In order to achieve highest possible level of profit, the typical firm in the economy should
A) stop hiring labor when the extra profit from selling the output produced by the last worker hired just equals the value of the last worker's wage.
B) stop hiring labor when the extra revenue from selling the output produced by the last worker hired just equals the value of the last worker's wage.
C) stop hiring labor when the extra price from selling the output produced by the last worker hired just equals the value of the last worker's wage.
D) stop hiring labor when the extra revenue from selling the output produced by the last worker hired becomes less than the value of the last worker's wage.
Correct Answer:
Verified
Correct Answer:
Verified
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