When a firm is hiring an input such that the marginal revenue product of the input is equal to the marginal factor cost of the input, the firm
A. is maximizing economic profit.
B. is hiring too little of the input.
C. should be expanding output.
D. is producing too much output.
Answer: A
You might also like to view...
England's mercantilist principles:
a. were active from the early 1600s. b. were active from the early 1700s. c. were a response to Spanish tariffs. d. were pursued by Charles II after 1685.
What do foregone interest on money invested in a firm, wages paid to production workers, interest paid on bank loans, and the purchase of parts for assembly have in common? a. All are explicit costs
b. All are implicit costs. c. All are opportunity costs. d. None are opportunity costs.
A factory is an example of:
a. capital. b. scarcity. c. an enterprise. d. land resources. e. output.
There are only increases in total surplus when a country exports a good, since more units of the country's output of that good are produced
a. True b. False Indicate whether the statement is true or false