The marginal productivity principle says that a profit-maximizing firm should
a. hire capital until its marginal product is zero.
b. hire labor until another worker costs more to hire than she can earn for the firm.
c. hire the quantities of capital and of labor at which their marginal products are equal.
d. hire capital until its marginal product is negative.
b
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A demand curve
a. has a positive slope; that is, when price increases, quantity demanded increases b. depicts the negative relationship between price and quantity demanded; that is when price increases, quantity demanded falls c. depicts what happens to demand when supply changes d. depicts what happens to supply when demand changes e. illustrates that price and quantity demanded cannot change at the same time
Markets are generally more effective at providing? ________ and governments are most effective at providing? ________.
A) pure public goods; common pool resources
B) pure private goods; pure public goods
C) common pool resources; club goods
D) club goods; pure private goods