Which of the Following Expresses the Correct Decision-Making Rule for a Profit-Maximizing

question 11

Multiple Choice

Which of the following expresses the correct decision-making rule for a profit-maximizing firm hiring units of labor?

• A) If the MRP was rising, less labor would be employed as time passed.
• B) The firm should continue to hire workers as long as their MRP is greater than the wage rate.
• C) The firm should continue to hire workers until the total costs of all workers equals the total revenue from the output of the workers.
• D) The firm should continue to hire workers until the wage rate equals the price of the product.