An individual purchasing goods and services will allocate his expenditures so that the pleasure he gets out of spending one more dollar is the same no matter what he spends that dollar on. For a firm purchasing resources, this is the same as ensuring that:
a. the ratio between marginal revenue product and the marginal factor cost is equal for all the resources used.
b. the marginal revenue product of the resources are equal.
c. the marginal factor cost of the resources are equal.
d. the ratio between marginal revenue product and the marginal factor cost is greater than one for all resources.
e. the marginal revenue product is greater than the marginal factor cost of all resources.
a
You might also like to view...
Which of the following describes the difference between "scarcity" and "shortage"?
A) There is no difference; either word can be used to describe the situation that exists when there is less of a good or service available than people want. B) There is a shortage of almost everything. Scarcity occurs only if the quantity demanded of a good or service is greater than the quantity supplied at the current market price. C) In the economic sense, almost everything is scarce. A shortage of a good or service occurs when the quantity demanded is greater than the quantity supplied at the current market price. D) In the economic sense, almost everything is scarce. A shortage of a good or service occurs when the quantity demanded is greater than the quantity supplied at the equilibrium price.
The Depository Institutions Deregulation and Monetary Control Act passed by the Congress in 1980 led to:
a. the complete removal of thrift institutions. b. increased competition among financial institutions. c. the formation of large number of savings and loan associations. d. privatization of all financial institutions in the U.S. e. the complete removal of credit unions.
The net flow of financial assets and similar claims is the private current account balance.
Answer the following statement true (T) or false (F)
Refer to Figure 21-26. Rhonda experiences an increase in her hourly wage. Her optimal choice point moves from A to B. For Rhonda,
a. Leisure is a normal good. b. Her labor supply curve is backward bending. c. Both a and c are correct. d. Her labor supply curve is upward sloping.