"The firm hires the factor up to the point where the value of the factor's marginal product is equal to the factor's price." This statement applies to which factor of production?

Question

Quizplus · Accepted Answer

The statement applies to all factors of production, including labor, land, and capital. Firms hire or use each factor up to the point where the value of its marginal product equals its price, ensuring cost-effectiveness in production.

"The Firm Hires the Factor Up to the Point Where