When Labor Is a Firm's Only Variable Input in Its

question 5

Multiple Choice

When labor is a firm's only variable input in its production process, a profit-maximizing firm will continue to employ additional workers as long as:

• A)the marginal product of labor exceeds zero
• B)the marginal revenue product of labor is less than the marginal resource cost.
• C)the marginal revenue product of labor exceeds the marginal resource cost.
• D)the marginal product of labor exceeds the marginal resource cost.
• E)the marginal product of labor is less than the marginal resource cost.

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