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Profit-Maximizing Firms Will Expand Their Employment of Each Variable Resource

Question 21

Multiple Choice

Profit-maximizing firms will expand their employment of each variable resource until


A) the Marginal Revenue Product (MRP) of the resource is just equal to the price of the resource.
B) other firms realize they can't compete.
C) the MRP of the resource is below the cost of the resource.
D) the MRP of the resource is above the cost of the resource.

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