Profit maximization requires that
A) the marginal factor cost of every input equals that input's marginal physical product.
B) the marginal factor cost of every input equals that input's marginal revenue product.
C) the amount of one input hired divided by the amount of another input hired equals the total costs of the first input hired divided by the total costs of the second input.
D) equal amounts of each input are employed.
B
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Market demand curves may slope downward even if some individual demand curves do not because
a. the law of demand requires that this is true. b. lower prices may bring more purchasers into the market. c. merchants try to sell more at lower prices. d. people believe expensive goods are better goods.
If 1 British pound was equal to $2 in 2005 and $1.75 in 2008, it indicates that the pound appreciated against the dollar in 2008
a. True b. False Indicate whether the statement is true or false