Consider a Firm's Demand for a Factor of Production

Multiple Choice

Consider a firm's demand for a factor of production.A perfectly competitive firm will continue to increase production until the marginal cost of the variable factor is

A) greater than the marginal revenue of the firm's output.
B) less than the marginal revenue of the firm's output.
C) equal to zero.
D) equal to the marginal revenue product of the factor.
E) equal to the marginal revenue of the firm's output.