The optimal level of resource use comes when
A) MRP exceeds input price.
B) MRP is less than input price.
C) MRP equals input price.
D) use of the resource exhausts the producer's funds.

Question

Quizplus · Accepted Answer

The optimal level of resource use is achieved when the marginal revenue product (MRP) equals the input price, ensuring that the cost of the resource is justified by the revenue it generates.

The Optimal Level of Resource Use Comes When