When deciding whether to hire an additional worker, firms need only consider how the additional worker would affect
A)costs.
B)revenues.
C)output.
D)profit.

Question

Quizplus · Accepted Answer

When deciding whether to hire an additional worker, firms should consider how the additional worker would affect profit. The decision to hire an additional worker should only be made if the additional worker would contribute to increasing profits. Therefore, firms should consider not only the additional wage cost but also the additional revenue generated by the worker's extra contribution to production. If the additional revenue exceeds the additional cost, then hiring the worker is profitable.

When Deciding Whether to Hire an Additional Worker, Firms Need