Which of the following statements is false ?
A) A profit maximizing firm that is a price taker in both product and factor markets will hire a factor up to the point at which the last unit of the factor hired adds as much to costs as it does to revenues.
B) A profit maximizing firm that is a price taker in both product and factor markets will hire a factor up to the point at which the value of marginal product equals the wage rate.
C) A profit maximizing firm that is a price taker in both product and factor markets will hire a factor up to the point at which the marginal revenue product equals the wage rate.
D) A profit maximizing firm that is a price taker in both product and factor markets will hire a factor up to the point at which marginal physical product of the last worker hired equals zero.
Correct Answer:
Verified
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