A Profit-Maximising Firm Should Hire Workers Up to the Point

question 131

True/False

A profit-maximising firm should hire workers up to the point where labour's marginal revenue product equals the wage rate.

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Definitions:

Producing

Producing involves the creation, manufacturing, or assembly of goods and services for sale or distribution.

Pairs

Two things considered together because of similarity, opposition, or adjacency; often used in context to describe complementary items or concepts.

Marginal Cost

The outlay for creating another unit of a product or service.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.