Use the following to answer question(s):
-(Exhibit: Marginal Revenue Product and Demand) If the product price is $4 per unit and the price of the factor of production is $80 per unit, the profit-maximizing quantity of the factor is _______ unit(s).
A) 1
B) 3
C) 5
D) 7

Question

Use the following to answer question(s):  
-(Exhibit: Marginal Revenue Product and Demand) If the product price is $4 per unit and the price of the factor of production is $80 per unit, the profit-maximizing quantity of the factor is _______ unit(s).
A) 1 
B) 3 
C) 5 
D) 7

Quizplus · Accepted Answer

The profit-maximizing quantity of the factor is 5 units because at this quantity, the marginal revenue product of the factor is equal to the price of the factor.

Use the Following to Answer Question(s)