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The General Profit-Maximizing Rule for Employment of a Variable Input

Question 38

Multiple Choice

The general profit-maximizing rule for employment of a variable input is to employ that input until its marginal revenue product is equal to the marginal cost of the input, as long as:


A) the marginal cost of the input would be less than or at most equal to the marginal revenue product of the input for a greater quantity of the input.
B) the marginal cost of the input would be at least equal to or above the marginal revenue product of the input for a greater quantity of the input.
C) the marginal cost of the input would be at least equal to or below the marginal revenue product of the input for a greater quantity of the input.
D) the marginal cost of the input would be at least equal to or above the marginal revenue product of the input for a lower quantity of the input.
E) the marginal cost of the input would be at least equal to the marginal revenue product of the input for a greater quantity of the input.

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