A firm is hiring resources X, Y, and Z in the profit-maximizing amounts when
A)MRPx/Px equals MRPy/Py equals MRPz/Pz equals 1.
B)the sum of the MRPs of the three resources is at a minimum.
C)the marginal revenue productivity of all three resources is the same.
D)the marginal revenue product of the last dollar spent on each of the three resources is the same.

Question

Quizplus · Accepted Answer

The profit-maximizing condition is that the marginal revenue product of each resource should be equal to its price.

A Firm Is Hiring Resources X, Y, and Z in the Profit-Maximizing