4. We showed in this chapter that a profit-maximizing firm will hire the number of workers such...
Question:
4. We showed in this chapter that a profit-maximizing firm will hire the number of workers such that the wage is equal to the value of the marginal product of labor. But, as we saw in Chapter 6, a profit-maximizing firm will produce the quantity of output such that price equals marginal cost. Are these two rules inconsistent?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: