A firm that wants to maximize profits should hire each input to the point where
A) its marginal revenue product divided by the price of the input equals one.
B) its marginal revenue product divided by its marginal physical product equals the wage.
C) its marginal revenue product divided by the product price equals one.
D) its marginal physical product divided by the price of the input equals the product price.
Correct Answer:
Verified
Q351: Cost minimization suggests that two inputs should
Q352: If the marginal revenue product of an
Q353: If a firm wants to maximize profits
Q354: If a firm uses only capital and
Q355: Profit maximization occurs where
A) each factor is
Q357: Profit maximization requires that
A) the marginal factor
Q358: When a firm is hiring an input
Q359: A firm will hire a unit of
Q360: A perfectly competitive firm discovers that its
Q361: Explain what the profit-maximizing combination of resources
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents