Which of the following resources will a producer demand another unit of so long as the additional unit's marginal revenue exceeds its marginal cost?
A)labor
B)capital
C)natural resources
D)entrepreneurial ability
E)All of the answers are correct.

Question

Quizplus · Accepted Answer

A producer will demand additional units of any resource as long as the marginal revenue from using that resource exceeds its marginal cost. This applies to labor, capital, natural resources, and entrepreneurial ability. Therefore, all the options are correct, and the best choice is E.

Which of the Following Resources Will a Producer Demand Another