Profit maximization requires that
A) the marginal factor cost of every input equals that input's marginal physical product.
B) the marginal factor cost of every input equals that input's marginal revenue product.
C) the amount of one input hired divided by the amount of another input hired equals the total costs of the first input hired divided by the total costs of the second input.
D) equal amounts of each input are employed.
Answer: B
You might also like to view...
An economy's income is the same as its expenditure because every transaction has a buyer and a seller
a. True b. False Indicate whether the statement is true or false
Suppose at the prevailing interest rate of 4 percent the money supply and the quantity of money demanded are both $2 trillion. At a 5 percent interest rate, the quantity of money demanded is $1.5 trillion, while at a 3 percent interest rate it is $2.5 trillion. If the Fed conducts an open-market purchase of $50 billion, and if the money multiplier is 10, then at what interest rate will the money
supply equal the quantity of money demanded? a. An interest rate of 5 percent and a quantity of $1.5 trillion. b. An interest rate of 4 percent and a quantity of $2 trillion. c. An interest rate of 3 percent and a quantity of $2.5 trillion. d. An interest rate of 4 percent and a quantity of $2.5 trillion.