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Basic Question 27 of 29

For profit maximization a firm should hire the quantity of labor at which the ______

I. marginal revenue of labor (MR) equals the wage rate (W).
II. marginal revenue product of labor (MRP) equals the marginal cost (MC).
III. marginal revenue of labor (MR) equals the marginal cost (MC).
IV. marginal revenue product of labor (MRP) equals the wage rate (W).
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User Contributed Comments 1

User Comment
DonAnd 2 conditions for profit maximization in the labor force:-

1) MRP = Wage rate
2) MR = MC
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Edward Liu

Edward Liu

Learning Outcome Statements

determine and interpret break even and shutdown points of production, as well as how economies and diseconomies of scale affect costs under perfect and imperfect competition

CFA® 2024 Level I Curriculum, Volume 1, Module 1.