The rule for the optimal use of any input states that
a. when MRP is less than price, profit will increase when more of that resource is utilized.
b. when MRP is greater than resource price, profit will increase when more of that resource is utilized.
c. when MRP equals price, profit will increase when less of that resource is utilized.
d. when MRP is greater than resource price, profit will increase when less of that resource is utilized.
e. resources should be used only if MRP exceeds product price.
B
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The short-run effects of an increase in the saving rate include
a. a higher level of productivity. b. a higher growth rate of productivity. c. a higher growth rate of income. d. All of the above are correct.
Many economists look at the Federal Budget and see that it should be broken into
A. a capital budget and an everyday budget. B. an operating budget and a capital budget. C. a defense budget and a non-defense budget. D. an operating budget and a defense budget.