Show how the profit-maximizing rule for hiring resources is equivalent to the cost-minimizing rule
What will be an ideal response?
The cost-minimizing rule for hiring resources is to hire resources to the point at which the marginal physical product per last dollar spent on each input is equalized. That is: (MPP of labor/price of labor) = (MPP of capital/price of capital) = (MPP of land/price of land), and so on. The profit-maximizing rule substitutes MRP for MPP in the equations. However, since MRP is the MPP multiplied by the price of the product, which is the same for all the inputs, the two conditions are exactly the same.
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As a source of bank funds, __________ has fallen by nearly two-thirds in relative importance since 1970
A) time deposits B) transactions deposits C) savings deposits D) equity
Which of the following is TRUE of the cap-and-trade program in the United States?
A) The state of California began a cap-and-trade program in 2013. B) The United States is a participant of the Kyoto Protocol that implemented the cap-and-trade program in 2005. C) All states in the U.S. have implemented a cap-and-trade program before the Kyoto Protocol in 2005. D) The state of Texas is currently the only state in the U.S. that has not implemented a cap-and-trade program.