Respuesta :
A profit-maximizing, competitive firm will always hire an additional worker when the additional worker makes a positive contribution to b. total profit.
A business that seeks to maximize profits will hire workers up until the wage rate exceeds the marginal output of labor. The firm should increase hiring if the marginal product of labor exceeds the wage rate until the two quantities are equal.
Similar to any market, the profit maximization level occurs when marginal cost and marginal revenue are equal. The labor wage in this instance represents the marginal cost of labor. As a result, the point at which the salary matches the marginal revenue product of labor is where the employer will make the most money.
It is not optimal for a corporation to pay its workers more than it will make in revenues from their labor, according to economic theory, therefore profit-maximizing firms would hire people up to the point where the marginal revenue product is equal to the wage rate.
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