Firms should hire additional units of a resource as long as the:
A. marginal product of the resource exceeds the price of the resource multiplied by the quantity of output produced.
B. marginal product of the resource is less than the price of the resource.
C. price of the output produced is positive.
D. marginal revenue product of the resource exceeds the cost of an additional unit of the resource.
Answer: D
You might also like to view...
An individual who wants to stop smoking but chooses not to
A) reflects future bias. B) reflects present bias. C) reflects irrationality. D) reflects uncontrollable addiction.
Which of the following is true of the United States?
a. It has been and continues to be a net capital exporter. b. It is today the world's largest debtor nation. c. It was, until the last decade, a net capital importer. d. It has historically been a debtor nation. e. It is the world's largest creditor nation.
Which of the following is infrastructure?
a. Schools. b. Roads. c. Public health and sanitation services. d. All of these.
Consumers express self-interest when they:
a. Reduce business losses b. Search for jobs with the highest wages c. Collect economic profits d. Seek the lowest price for a product