If the competitive firm maximizes profit by selecting labor rather than output, it will earn greater economic profit
Indicate whether the statement is true or false
False. Whether the firm maximizes profit by selecting output or labor, the resulting profit is the same. Since MC = w/MP, setting MC = p is the same as setting w = p ? MP.
You might also like to view...
According to chapter 1 in your textbook,
A) all economists approach questions with some preconceptions or prejudices. B) economists (and others) ought to approach all questions with a completely open mind, though they often do not. C) economists approach questions with more of an open mind than do most other social scientists. D) most economists approach questions with a completely open mind. E) most economists derive their conclusions from their political preferences.
Refer to Figure 2-2. Suppose Vidalia is currently producing 20 dozen orchids per period. How many roses is it also producing, assuming that resources are fully utilized?
A) 30 dozen roses B) 50 dozen roses C) 100 dozen roses D) 150 dozen roses