Assuming labor is the only variable factor of production, production of a good will occur
A) as long as the marginal revenue product of labor is positive.
B) if society values a good more than it costs firms to hire the workers to produce the good.
C) as long as the product's price is greater than the marginal revenue product of labor.
D) if the marginal cost of a unit of output equals the marginal revenue product of labor.

Question

Quizplus · Accepted Answer

Production will occur if the value society places on the good (reflected in its price) is greater than the cost of hiring labor to produce it, ensuring profitability.

Assuming Labor Is the Only Variable Factor of Production, Production