The diagram shows the marginal product of labour curve (MPL) for a firm.
Labour is the only variable factor and the firm pays its workers the market wage.
At the level of employment ON, which statement is correct?
1 )
The firm is maximising its output.
2 )
The firm is minimising its total costs.
3 )
The firm is minimising its wage bill.
The firm is minimising its marginal cost of production.
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