If the value of marginal product of a factor of production exceeds the price of the factor, the
A) firm should hire more of that factor.
B) firm should hire less of that factor.
C) firm is maximizing profits.
D) firm should shut down.
A
Economics
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David Ricardo's model, which provided an explanation of why nations trade, was based on:
a. labor productivity. b. technology. c. population. d. government control
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If a perfectly competitive apple farm's marginal revenue exceeds the marginal cost of the last bushel of apples sold, what should the farm do to maximize its profit?
A) increase output B) decrease output C) lower its price to sell more D) determine what the total revenue and total cost of production are
Economics