Economics 9708 · AS & A Level · Long-run costs and economies of scale

Long-run costs and economies of scale — practice question

At what stage does a profit-maximising firm employ the optimum number of workers?

  • Awhen the average revenue product of labour equals the average cost of hiring workers
  • Bwhen the marginal revenue product of labour equals the average cost of hiring workers
  • Cwhen the marginal revenue product of labour equals the marginal cost of hiring workers
  • Dwhen the marginal revenue product of labour equals the trade union supplied cost of workers

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