A firm will find it profitable to hire workers up to the point at which their


2. Afirm will find it profitable to hire workers up to the point at which their: A. marginal resource cost equals the wage rate. B. wage rate equals product price. C. MP is equal to their MRP D. MRP is equal to their marginal resource cost.

Answer

D. MRP is equal to marginal resource cost.

Because MRP is the increase or decrease in revenue due to additional unit resource so as long as cost of adding additional resource is less than or equal to revenue earned due to that resource, firm should add the resource.

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