A firm that wants to employ workers should a. hire workers as long as the wage...

A firm that wants to employ workers should

	a.	hire workers as long as the wage is less than the value of the marginal product.
	b.	not hire workers if the value of the marginal product is less than the wage.
	c.	hire workers as long as the wage is lower than the marginal profit of the last or previously hired worker.
	d.	hire workers as long as the wage is greater than the value of the marginal product.

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Expert Solution

Option a

hire workers as long as the wage is less than the value of the marginal product

The firm employ worker up to the VMPL=wage

the profit from each worker is a sum of VMPL-wage and the profit is maximum when the VMPL=wage for varible costs of labor.

Rahul Sunny answered 1 year ago

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