A perfectly competitive employer of an input will maximize profits from the employment of the input by equating:
a. the value of the marginal product of the input with the price of the output.
b. the marginal product of the last unit of the input employed with the input price.
c. the input price with the price of the product produced.
d. the marginal revenue product of the input with the input price.
e. the marginal product of the last unit of the input employed with the price of the product produced.
d
You might also like to view...
A corrective tax
a. allocates pollution to those factories that face the highest cost of reducing it. b. is a form of regulation. c. works well for all types of externalities. d. is inferior to regulatory policy according to most economists.
As long as both current and future consumption are normal goods, a decrease in the interest rate will result in a drop in savings.
Answer the following statement true (T) or false (F)