A rule of thumb in the employment of resources is to set

A. marginal revenue product (MRP) equal to marginal factor cost (MFC).
B. marginal physical product equal to marginal resource cost.
C. marginal revenue (MR) equal to marginal cost (MC).
D. none of these.


Answer: A

Economics

You might also like to view...

Explain the process by which a private subsidy corrects an external benefit

What will be an ideal response?

Economics

A decline in aggregate demand is analogous to an upward movement along the short-run Phillips curve

a. True b. False Indicate whether the statement is true or false

Economics

Cross-price elasticity of demand measures how the quantity demanded of one good changes as the price of another good changes

a. True b. False Indicate whether the statement is true or false

Economics

Which type of the market failure exists when the effect of one party's economic activities on another party is not taken into account by the price system?

A. Imperfect competition B. Externalities C. Public goods D. Imperfect information

Economics