A firm that wants to maximize profits should hire each input to the point where
A. its marginal product divided by the price of the input equals the product price.
B. its marginal revenue product divided by the price of the input equals one.
C. its marginal revenue product divided by its marginal product equals the wage.
D. its marginal revenue product divided by the product price equals one.
Answer: B
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A. how likely is the event you're insuring against. B. how easily you can reduce the risk of experiencing the event you're insuring against. C. when the event you're insuring against is most likely to occur. D. how many others will likely be affected by the event you're insuring against.
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