A profit-maximizing firm will employ a resource up to the point where
a. its marginal resource cost equals its marginal revenue product
b. its marginal resource cost equals its marginal product
c. its marginal resource cost equals the marginal revenue of the output
d. its marginal resource cost equals the price of the resource
e. the price of the resource equals the marginal revenue of the output
A
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In a Bertrand model of oligopoly:
A. firms produce differentiated products and set their prices simultaneously. B. firms produce homogenous products and set their prices simultaneously. C. firms choose how much to produce simultaneously and the price clears the market given the total quantity produced. D. firms choose how much to produce and the price to charge simultaneously.
Which of the following can be categorized as multilateral aid?
a. The U.S. providing funds to Haiti b. World Bank providing financial assistance in the form of flood relief funds to Brazil c. Pakistan requesting financial assistance for earthquake relief from the developed world d. France promising funds to the Philippines against duty-free imports of French products e. USAID relieving Nepal of the outstanding debt the latter owes to the organization
Four years ago Ollie deposited some money into an account. He earned 5 percent interest on this account and now it has a balance of $303.88 . About how much money did Ollie deposit into his account when he opened it?
a. $210 b. $220 c. $240 d. $250
Suppose you have a choice between receiving a lump-sum payment of $10,000 today or four annual payments of $2,750 (with the first payment today). Of the following, which is the lowest annual interest rate at which you would prefer the lump-sum payment over the four annual payments?
a. 2% b. 5% c. 7% d. 10%