JAMB - Economics (1999 - No. 23)
An entrepreneur will continue to employ labour up to a point where?
costs are minimized
maximized efficiency is attained
wages are equal to marginal product of labour
marginal product of labour is equal to zero
Explanation
An entrepreneur will continue to employ labor until the marginal product of labor equals the wages. Thus, hiring additional labor is efficient and profitable only when the revenue generated by that labor matches its cost.
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