By comparing the value of marginal product with the marginal cost per input, a firm can find the:
A. cost-maximizing quantity to hire.
B. revenue-maximizing quantity to hire.
C. output-maximizing quantity to hire.
D. profit-maximizing quantity to hire.
Answer: D
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The multiplier effect
A) explains what causes an expansion. B) has no impact on equilibrium expenditure. C) reinforces the negative effects of any reduction in spending. D) explains what causes a recession. E) explains how the economy recovers from a recession.
Thomas Schelling's most notable work dealt with ________, which lead to his advising role for the film Dr. Strangelove
A) neighborhood segregation B) nuclear annihilation C) medical malpractice D) psychotherapy
Paying a wage to an employee that is lower than the employee's marginal revenue product is sometimes referred to as
A) illegal in most states. B) monopolistic exploitation. C) monopsonistic exploitation. D) total exploitation.
Medicare is an example of
A. A direct cash transfer payment. B. Free goods. C. In-kind income. D. Personal income.