Competitive firms hire workers until the additional benefit they receive from the last worker hired is equal to
(i)the additional cost of that worker.
(ii)the wage paid to that worker.
(iii)the marginal product of that worker.
A)(i) only
B)(iii) only
C)(i) and (ii) only
D)(ii) and (iii) only

Question

Quizplus · Accepted Answer

Competitive firms hire workers until the additional benefit (marginal revenue product) equals the additional cost, which is the wage paid to that worker.

Competitive Firms Hire Workers Until the Additional Benefit They Receive