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). This is because hiring an additional factor unit will increase the total revenue by the MRP, while the cost of hiring that additional unit is the MFC. As long as the MRP is greater than the MFC, the firm can increase its profits by hiring more factor units.

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