A profit-maximizing firm should employ a resource up to the point that:
a. marginal revenue product is zero.
b. marginal revenue product equals marginal resource cost.
c. marginal revenue product is maximized.
d. marginal revenue equals marginal cost.
b
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If Ewan is consuming his utility maximizing bundle and the price of one good falls, what happens to the marginal utility per dollar spent on this good (MU/P), and what should Ewan do?
A) MU/P has increased and Ewan should buy more of this good. B) MU/P has decreased and Ewan should buy more of this good. C) MU/P has increased and Ewan should buy less of this good. D) MU/P has decreased and Ewan should buy less of this good.
The ________ describes the combinations of interest rates and aggregate output for which the quantity of money demanded equals the quantity of money supplied
A) IS curve B) LM curve C) consumption function D) investment schedule
In Table 10.1, what is the number of unemployed in Year 1?
A. 15 million. B. 75 million. C. 90 million. D. 105 million.
The fact that as snow accumulates, snow shovel sales rise, suggests the two are
A. neither directly correlated nor inversely correlated. B. both directly correlated and inversely correlated. C. inversely correlated. D. directly correlated.