Asked by Sydney Vanpelt on Jun 29, 2024
Verified
A firm will continue hiring labor as long as the MRP of labor ________ the market wage rate.
A) is greater than or equal to
B) is less than
C) is equal to
D) determines
MRP of Labor
The Marginal Revenue Product of Labor, representing the additional revenue generated from hiring one more unit of labor.
Market Wage Rate
The prevailing rate of pay for work of a similar nature within a given labor market.
Hiring Labor
The process of finding, selecting, and employing people to work for wages or salaries.
- Comprehend the methods businesses use to decide on the best levels of staffing and the salaries they are prepared to offer.
Verified Answer
VH
Vanessa HerreraJul 04, 2024
Final Answer :
A
Explanation :
A firm will continue hiring labor as long as the marginal revenue product (MRP) of labor is greater than or equal to the market wage rate, because this indicates that the additional labor is still contributing positively to the firm's profits.
Learning Objectives
- Comprehend the methods businesses use to decide on the best levels of staffing and the salaries they are prepared to offer.