Why does a profit-maximizing firm hire workers up to the point where the wage equals the value

Question:

Why does a profit-maximizing firm hire workers up to the point where the wage equals the value of marginal product? Show that this condition is identical to the one that requires a profit-maximizing firm to produce the level of output where the price of the output equals the marginal cost of production.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Labor Economics

ISBN: 9781260565522

8th Edition

Authors: George Borjas

Question Posted: