Economics A Level: What happens when the MRP is
1. Higher than the MC
2. Same as the MC
3. Lower than the MC

Question

What happens when the MRP is
1. Higher than the MC
2. Same as the MC
3. Lower than the MC

go kys · Accepted Answer

1. When the MRP is higher, the Firm can Bolster Profits by employing more Workers. 
2. The Firm shouldn’t Hire or Fire. The Optimal Number of Workers is reached
3. When the MC is Higher, the Workers are costing the Firm too much. The Firm may lay off workers

Economics A Level

What happens when the MRP is 1. Higher than the MC 2. Same as the MC 3. Lower than the MC

1. When the MRP is higher, the Firm can Bolster Profits by employing more Workers. 2. The Firm shouldn’t Hire or Fire. The Optimal Number of Workers is reached 3. When the MC is Higher, the Workers are costing the Firm too much. The Firm may lay off workers

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