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A Condition for the Profit-Maximizing Use of Any Factor of Production

Question 96

Multiple Choice

A condition for the profit-maximizing use of any factor of production is (where MP = marginal product,w = the price of a factor of production,p = price of one unit of the firm's output,MR = marginal revenue,MC = marginal cost,MRP = marginal revenue product) :


A) MRP = MP × p
B) MR = A condition for the profit-maximizing use of any factor of production is (where MP = marginal product,w = the price of a factor of production,p = price of one unit of the firm's output,MR = marginal revenue,MC = marginal cost,MRP = marginal revenue product) : A) MRP = MP × p B) MR = C) MC = MR × w D) w = MP × p E) MRP = MR × MC
C) MC = MR × w
D) w = MP × p
E) MRP = MR × MC

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