The rule for the optimal use of any input states that
a. when MRP is less than price, profit will increase when more of that resource is utilized.
b. when MRP is greater than resource price, profit will increase when more of that resource is utilized.
c. when MRP equals price, profit will increase when less of that resource is utilized.
d. when MRP is greater than resource price, profit will increase when less of that resource is utilized.
e. resources should be used only if MRP exceeds product price.
B
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Which of the following would be considered an example of fiscal policy?
A. Provision of additional cash to the banking system. B. A reduction in income tax rates. C. A broad government initiative to reduce the country's reliance on agriculture and promote high-technology industries. D. Interest rate hikes generated by a reduction in the money supply.
Good Patties is a chain fast-food hamburger restaurant that wants to expand into a foreign market. The managers of Good Patties are most concerned about the financial commitment and desire to keep the potential cost as low as possible. Which of the following entry methods is most likely to address the managers' financial concerns?
A) acquiring a foreign firm through a merger B) establishing a local office/restaurants managed by one of Good Patties' managers C) franchising D) independent entry
If a good is considered "inferior" then:
(a) As its price rises, less of it will be bought. (b) As its price falls, more of it will be purchased. (c) As the consumer's income increases less of the good is purchased. (d) As the consumer's income increases more of the good is purchased.
During the Great Depression:
A) By 1933, 25 percent of the nation's workers had lost their jobs. B) output reached its lowest level in 1929. C) the production possibilities curve shifted sharply inward, which explains the drop in output, jobs, and overall prosperity. D) firms increased output but used fewer workers.