Question

A competitive, profit-maximizing firm hires labor until the:__________. a. wage equals the rental price of capital. b. price of output multiplied by the marginal product of labor equals the wage. c. marginal product of labor equals the wage. d. real wage equals the real rental price of capital.

Answer 1

Answer:

The correct answer is c. marginal product of labor equals the wage.

Explanation:

The marginal productivity is the variation that the production of a good experiences when increasing a unit of a productive factor of the same, remaining the rest constant.

It is an economic index that is used to express and measure changes in the result of a productive process once the variables that affect it change. That is, the productive factors. This measure expresses the variations and intensity of these in the face of changes in productive elements, thus deciphering the importance of each one of them for the total calculation.