Multiple Choice QuestionThe MRP=MRC rule tells us that in pure competition a firm will hire workers Blank______.Multiple choice question.beyond the point at which the market wage rate (its MRC) is equal to its MRPup to the point at which the market wage rate (its MRC) is equal to its MRPup to the point at which the average of all its resource costs (its MRC) is equal to its MRPup to the point at which the average of all its resource costs (its MRC) is equal to its marginal revenue
Question
Multiple Choice QuestionThe MRP=MRC rule tells us that in pure competition a firm will hire workers Blank______.Multiple choice question.beyond the point at which the market wage rate (its MRC) is equal to its MRPup to the point at which the market wage rate (its MRC) is equal to its MRPup to the point at which the average of all its resource costs (its MRC) is equal to its MRPup to the point at which the average of all its resource costs (its MRC) is equal to its marginal revenue
Solution
The correct answer is: up to the point at which the market wage rate (its MRC) is equal to its MRP.
This is because the MRP=MRC rule states that a firm will continue to hire workers until the cost of hiring an additional worker (MRC or Marginal Resource Cost) equals the additional revenue the firm can get from hiring that worker (MRP or Marginal Revenue Product). This is the point at which the firm maximizes its profit.
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