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 revenue (MR) equal to marginal cost (MC).
C) marginal physical product equal to marginal resource cost.
D) none of the above.
A
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The equation Y = A is known as the ________
A) Cobb-Douglas production function B) labor supply curve C) marginal product of labor D) capital-to-employment function
Leontief discovered a "paradox" in his test of the HOmodel for the United States. He expected the United States to export _____intensive goods and import _____ intensive goods; but his study indicated the reverse was TRUE.
a. land; technology b. labor; land c. capital; labor d. labor; capital
Suppose that during a given time period the implicit cost for a business was $1,000 and that the explicit cost was $5,000. Also suppose that the firm sold 1,000 units of its products at $5 per item. We can conclude that the firm's
A. accounting profit was $0, and economic profit was -$1,000. B. accounting profit was $5,000, and its economic profit was $0. C. accounting profit was $0, and economic profit was $1,000. D. accounting and economic profits were both $0.
The above table gives the demand schedule for a monopoly. The demand is inelastic over the entire price range between
A) $6 and $1. B) $5 and $1. C) $3 and $1. D) $6 and $4. E) $4 and $3.