A firm wanting to maximize profits should operate in such a way that
A) the MRP of each input is equal to or greater than its MFC.
B) MRP equal MFC in the input market but MC must exceed MR in the output market.
C) marginal revenue must be equal to the marginal revenue product.
D) none of the above.
Answer: A
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In the diagram below, draw a straight line with a slope of zero
What will be an ideal response?
In 2002 some politicians and many representatives of the steel and iron-ore mining industries in the U.S. complained foreign steel producers were illegally "dumping" steel and contributing to a potential unemployment problem
According to the economic way of thinking, their argument is questionable because A) it is not at all clear what the appropriate or correct price of steel is. B) it is not at all clear what the appropriate or correct cost of steel is. C) it is not at all clear that such an activity increases total unemployment in the U.S. D) all of the above are true.
It has been hypothesized that the productivity slowdown could have been caused by all of the following except
a. lower worldwide money growth. b. lower technology growth. c. higher oil prices. d. increased government regulation.
Because resources are not perfectly adaptable to the production of both good A and good B,
a. the opportunity cost of A increases as production of A increases b. the opportunity cost of A decreases as production of A increases c. it is impossible for the economy to produce both A and B d. the opportunity cost of A is constant e. the opportunity cost of B is constant