"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

This principle applies to all factors of production, including labor, land, and capital, as firms aim to maximize profit by equating the marginal revenue product of a factor to its price.

"The Firm Hires the Factor Up to the Point Where