question 8 of 11\na competitive, profit - maximizing firm will demand more labor until what condition is…

question 8 of 11\na competitive, profit - maximizing firm will demand more labor until what condition is met?\no the wage times marginal product of labor equals the price of the good\no the marginal product of labor equals the wage\no the marginal product of labor equals wage/price of good\no profit equals the sum of wages paid

question 8 of 11\na competitive, profit - maximizing firm will demand more labor until what condition is met?\no the wage times marginal product of labor equals the price of the good\no the marginal product of labor equals the wage\no the marginal product of labor equals wage/price of good\no profit equals the sum of wages paid

Answer

Brief Explanations:

In a competitive, profit - maximizing firm, the firm will hire more labor until the value of the marginal product of labor (VMPL), which is the price of the good times the marginal product of labor ($P\times MPL$), equals the wage rate ($w$). Rearranging the VMPL = $w$ gives $MPL=\frac{w}{P}$, where $MPL$ is the marginal product of labor, $w$ is the wage, and $P$ is the price of the good.

Answer:

the marginal product of labor equals wage/price of good