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.
A
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In order to represent a consumer's choices on a graph, we draw her budget constraint as well as her __________ curves
Fill in the blank(s) with correct word
Exhibit 2-17 Production possibilities curve
In Exhibit 2-17, if countries A and B currently have the same production possibilities curve (PPC) as given in the figure, but this year country A locates at point A on its PPC and country B locates at point B on its PPC, then country A:
A. is more efficient than country B. B. will grow at a faster rate than country B. C. will grow at a slower rate than country B. D. is producing more capital goods than country B.