If a firm wants to maximize profits it should
A) hire each factor of production up to the point at which the marginal physical product per last dollar spent is equalized.
B) hire each factor of production up to the point at which the marginal revenue product per last dollar spent is equalized.
C) hire each factor of production up to the point at which the marginal factor cost per last dollar spent is equalized.
D) hire the same number of units of all inputs.
Correct Answer:
Verified
Q348: To minimize total costs for a particular
Q349: If the marginal physical product (MPP) of
Q350: If a firm faces perfectly competitive product
Q351: Cost minimization suggests that two inputs should
Q352: If the marginal revenue product of an
Q354: If a firm uses only capital and
Q355: Profit maximization occurs where
A) each factor is
Q356: A firm that wants to maximize profits
Q357: Profit maximization requires that
A) the marginal factor
Q358: When a firm is hiring an input
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