Profit-maximizing employment is the quantity of labor at which
A) marginal revenue product is equal to marginal factor cost.
B) marginal revenue product is equal to product price.
C) marginal factor cost is equal to marginal revenue.
D) marginal factor product is equal to product price.
Answer: A
Economics
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A) fluctuates from year to year but is always below potential GDP. B) fluctuates around potential GDP. C) grows at a constant 3 to 4 percent per year. D) can be called potential GDP when it is adjusted for price changes.
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Refer to Table 1-4. What is Eva's marginal benefit if she decides to stay open for two hours instead of one hour?
A) $25 B) $36 C) $60 D) $95
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