Profit maximization implies that firms will make input choices in a marginal way. Explain why the following

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Profit maximization implies that firms will make input choices in a marginal way. Explain why the following marginal rules found in this chapter are specific applications of this general idea:
a. MRL = MEL
b. MPL • MR = MEL = w
c. MVPL = MEL = w
d. MVPL = w
e. MVPL = MEL > w
If firms follow these various rules, will they also be producing a profit-maximizing level of output? That is, will they produce that quantity for which MR = MC? Will they also be minimizing costs if they use these rules? Explain your answers both intuitively and with algebra.
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Intermediate Microeconomics and Its Application

ISBN: 978-1133189039

12th edition

Authors: Walter Nicholson, Christopher M. Snyder

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