An employer hiring in a competitive labor market should hire additional labor as long as Multiple Choice the wage rate is less than MP. MC exceeds MR. average product exceeds MP. the MRP exceeds the wage rate.

Respuesta :

The correct answer is-  the MRP exceeds the wage rate.

How does MRP influence wage rates?

Basic economic theory suggests that wages depend on a worker's marginal revenue product MRP. (this is basically the value that they add to the firm which employs them.)

MRP is determined by two factors: MPP – Marginal physical product – the productivity of a worker.

What factors increase wages?

Productivity:

Wage increase is sometimes associated with increase in productivity.

Workers may also be offered additional bonus, etc., if productivity increases beyond a certain level.

Learn more about MRP and wage here:

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