Question

why does a competitive firm stop hiring new workers at the point where the extra revenue generated equals the workers wage? (1 point) following government regulations that set strict hiring limits for businesses ensuring the companys total production output is at its absolute maximum avoiding the high costs associated with providing employee job training hiring more workers past this point would cause the firm to lose profit

Explanation:

In a competitive firm, profit - maximization occurs when marginal revenue product (MRP, the extra revenue generated by a worker) equals the wage (marginal cost of hiring a worker). If MRP > wage, hiring more workers increases profit. If MRP < wage, hiring more workers decreases profit. So, when MRP = wage, the firm stops hiring as hiring beyond this point (where MRP < wage) leads to profit loss.

Answer:

Hiring more workers past this point would cause the firm to lose profit.