زیادہ سے زیادہ منافع کمانے والی فرم اس مقام تک زیادہ مزدور بھرتی کرے گی جہاں؟
A. Value of output most greatly exceeds labour's marginal factor cost
B. Marginal product of Labour is at its maximum value
C. Last unit of labour adds equally to total revenue and total cost
D. Average physical product of labour equals the nominal wage
Explanation
A profit-maximizing firm will hire more labor up to the point where the marginal revenue product (MRP) of labor equals the marginal factor cost (MFC) of labor, which is the wage rate. This is known as the point of equilibrium in the labor market.
The MRP of labor is the additional revenue generated by the last unit of labor hired, and the MFC is the additional cost of hiring that unit of labor. When MRP = MFC, the firm has maximized its profits.
