Firms will employ an input up to the point where
A. the input's price equals its marginal revenue product.
B. its marginal cost equals its marginal product.
C. the wage rate equals the productivity of capital.
D. the input's price equals its marginal product.
Answer: A
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Which of the following is not a market failure?
a. A lack of competition in some markets. b. Prices determined in competitive markets, which consumers, as individuals, have no control over. c. The presence of externalities in some markets. d. A lack of public goods desired by a majority of citizens. e. Income inequality.
Which of the following would help control the future growth of healthcare prices and expenditures?
a. greater reliance on government financed healthcare reimbursement plans b. an increase in the share of healthcare expenditures financed with low co-payment insurance c. an increase in the share of healthcare cost paid for either directly or from personal medical savings accounts d. the finance of prescription drugs for the elderly with a low co-payment insurance plan under Medicare
Which of the following allows you to provide information about the relationship between two variables?
a. coordinate system. b. pie chart c. bar graph d. time-series graph
Which is considered to be an economic resource by economists?
a. Rent b. Money c. Labor d. Wages