Firm managers should use inputs at levels where the:
A) Marginal benefit equals marginal cost.
B) Price equals marginal product.
C) Value marginal product of labor equals wage.
D) Marginal benefit equals marginal cost and value marginal product of labor equals wage.

Question

Quizplus · Accepted Answer

Firm managers should use inputs at levels where the marginal benefit equals marginal cost to achieve the best use of resources. Additionally, they should consider the value marginal product of labor in relation to the wage to ensure that they are getting the most value from employees. Therefore, the answer is D where both A and C concepts are taken into account.

Firm Managers Should Use Inputs at Levels Where The