26 A firm will find it profitable to hire workers up to the

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

Solution

Solution: marginal resource cost is equal to their MRP

Explanation: A firm will maximize the profits by continually addition of resources as long as the marginal revenue product exceeds or equal to the marginal revenue cost. Thus, profit is maximized when MRP = MRC