A profit-maximizing firm will use additional units of resources for production until:
A. Total, average, and marginal cost are equal
B. Total, average, and marginal revenue are equal
C. The marginal revenue product equals the marginal resource cost
D. The marginal revenue product is greater than the marginal resource cost
C. The marginal revenue product equals the marginal resource cost
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The ________ is the cost of paid by the producer plus any cost paid by everyone else when another unit of a good or service is produced
A) marginal external cost. B) marginal private cost. C) marginal social cost. D) None of the above answers is correct.
Suppose the reserve requirement is 10 percent and a person deposits $1,500 in a local bank. The local bank can now create a maximum of:
a. $150 in additional money, by lending $150. b. $15,000 in additional money, by lending $15,000. c. $1,500 in additional money, by lending $1,500. d. $1,350 in additional money, by lending $1,350. e. $135 in additional money, by lending $135.