XYZ Corporation operates in perfectly competitive input markets and employs labor, capital,land in its production process. What three conditions must be met for the firm to be maximizing profit?
What will be an ideal response?
(1.) The marginal revenue product of labor must equal the price of labor.
(2.) The marginal revenue product of capital must equal the price of capital.
(3.) The marginal revenue product of land must equal the price of land.
Economics
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Refer to the production possibilities frontier in the figure above. Which production point is unattainable?
A) point a B) point b C) point c D) point e
Economics
Marginal revenue product can be calculated using the formula marginal product × output price
A) only if the both marginal product of labor and the output price are constant. B) only if the firm has market power in the labor market C) only if output price is constant. D) only if the marginal product of labor is constant.
Economics