A firm that wants to maximize profits should hire each input to the point where
A) its marginal revenue product divided by the price of the input equals one.
B) its marginal revenue product divided by its marginal physical product equals the wage.
C) its marginal revenue product divided by the product price equals one.
D) its marginal physical product divided by the price of the input equals the product price.
A
You might also like to view...
Explain how each of the following limits the economic growth of developing nations:
(a) Insufficient capital formation (b) A shortage of human resources (c) A lack of social overhead capital
Does the money demand curve have a positive slope or a negative slope? Why does it have this slope? Explain why an increase in the variable on the vertical axis of the money demand curve causes either an increase or a decrease in the variable on the
horizontal axis of the money demand curve.
The transformation of a Lorenz curve into a numerical value is
a. the value of the diagonal minus the value of the two sides of the right angle triangle b. the sum of the percentages of income for all groups c. the Lorenz coefficient d. the Gini coefficient e. the value of the midpoint on the Lorenz curve
Which statement is consistent with what Keynes believed about consumption and disposable income?
A) Consumption depends upon disposable income and falls as disposable income rises. B) Consumption rises by the same amount as disposable income rises. C) Consumption rises by less than disposable income rises. D) Disposable income depends upon consumption.