Consider the following production and cost schedule for a firm.The first column shows the number of units of a variable factor of production employed by the firm.
TABLE 13-1
-Refer to Table 13-1.In order to determine this firm's profit-maximizing number of units of the variable factor of production,what necessary information is missing from the table?
A)the price per unit of the factor
B)the per unit price of the output
C)the marginal product of the factor
D)the marginal revenue product of the factor
E)the total output for the firm

Question

Consider the following production and cost schedule for a firm.The first column shows the number of units of a variable factor of production employed by the firm.
  TABLE 13-1
-Refer to Table 13-1.In order to determine this firm's profit-maximizing number of units of the variable factor of production,what necessary information is missing from the table?
A)the price per unit of the factor 
B)the per unit price of the output 
C)the marginal product of the factor 
D)the marginal revenue product of the factor 
E)the total output for the firm

Quizplus · Accepted Answer

To determine the profit-maximizing number of units of the variable factor, the firm needs to know the price per unit of the factor to compare it with the marginal revenue product.

Consider the Following Production and Cost Schedule for a Firm