The equation MPL / PL = MPC / PC
A)designates the MR = MC level of output.
B)assumes imperfect competition in the hiring of labor and capital.
C)is a sufficient condition for the maximization of profits.
D)is a necessary, but not sufficient, condition for the maximization of profits.

Question

Quizplus · Accepted Answer

This equation represents the condition for cost minimization, which is necessary for profit maximization, but not sufficient on its own.

The Equation MPL / PL = MPC / PC