A firm will hire additional units of any input up to the point where:
a. the marginal productivity of the input is maximized.
b. the marginal cost of employing the input is minimized.
c. the expense of employing the last unit is equal to the revenue brought in by the last unit.
d. the revenue brought in by the input is maximized.
c
Economics
You might also like to view...
Expansionary monetary policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be relatively ________ and real GDP to be relatively ________
A) lower; higher B) higher; higher C) lower; lower D) higher; lower
Economics
A firm currently has 5 workers each paid $15 per hour. If it decides to hire a 6th worker, the hourly wage increases to $18 for all workers. What is the marginal cost of hiring the 6th worker?
a. $3 b. $18 c. $15 d. $33
Economics