A product price searcher (monopolist, oligopolist, or monopolistic competitive firm) will hire more factor units as long as

Question

Quizplus · Accepted Answer

A product price searcher will hire more factor units as long as the marginal revenue product (MRP) is greater than the marginal factor cost (MFC), as this indicates that the additional revenue generated by hiring an additional unit of the factor exceeds the cost of that unit.

A Product Price Searcher (Monopolist, Oligopolist, or Monopolistic Competitive Firm)