When there are many inputs, a firm should employ them so that only inputs:
A)whose marginal product per dollar are identical are hired.
B)with the lowest marginal cost are hired.
C)with the highest marginal product are hired.
D)whose marginal cost is less than their marginal product are hired.

Question

Quizplus · Accepted Answer

To maximize efficiency and output, a firm should allocate its resources so that the marginal product per dollar spent on each input is equal across all inputs. This ensures that the firm is getting the most value out of its expenditures on inputs.

When There Are Many Inputs, a Firm Should Employ Them