Question: I don'T know which will be correct. help me in choosing the right one. A condition for the profit-maximizing use of any factor of production

I don'T know which will be correct. help me in choosing the right one. 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

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Question 1 (Multiple Choice Worth 1 points) (01.01 MC) Why might salt be a resource with a high cost in one market and a very low cost in another market? Trade could affect costs. Its supply could be...

HI PLEASE ANSWER ALL 1. Assume the market for apples is initially in equilibrium. Which of the following will result in a higher equilibrium price of apples? a. An increase in both the demand for and...

1. (01.01 MC) Why might salt be a resource with a high cost in one market and a very low cost in another market? (1 point) Trade could affect costs. Its supply could be scarce in one market and very...

Why might salt be a resource with a high cost in one market and a very low cost in another market? (1 point) Trade could affect costs. Its supply could be scarce in one market and very great in...

1.For any firm in any market structure, a factor's marginal revenue product is a.the average product of the factor multiplied by the price of the output. b.the change in revenue caused by the sale of...

A production possibility curve would ________ if the availability of an input decreased and would ________ if a lack of technology decreased production efficiency. (1 point) shift outward; shift...

1. For any firm in any market structure, a factor's marginal revenue product is a. b. the average product of the factor muitiplied by the price of the output. the change in revenue caused by the sale...

Due Sunday, 11/20: Problems from Zimmerman text: 2-11, 2-44, Case 2-3, 7-7, and 7-20 Chapter Two The Nature of Costs Chapter Outline A. Opportunity Costs 1. Characteristics of Opportunity Costs 2....

Question 1 2.5 pts Edit this Question Delete this Question 0 multiple_choice_question The amount by which an additional unit of a factor increases the firm's total revenue during a period is: The...

Oriental Sales Co. uses the first-in, first-out method in calculating cost of goods sold for three of the products that Oriental handles. Inventories and purchase information concerning these three...

Exotic Homes CC wanted to extend their building to include a lapa and a braai facility. They contracted Thatching Lapas (Pty) Ltd to build a new lapa and also to install a stainless steel braai when...

Parker, whose spouse died during the preceding year, has not remarried. Parker maintains a home for a dependent child. What is Parker s most advantageous filing status?

PART B At a particular location in a distillation column, where the temperature is 3 5 0 K and the pressure 5 0 0 m H g , the mole fraction of the more volatile component in the vapor is 0 . 7 at the...

LO11.2 Describe how profits and losses drive the long-run adjustment process of pure competition.

LO11.3 Explain the differences between constantcost, increasing-cost, and decreasing-cost industries.

7. last word How can patents speed up the process of creative destruction? How can patents slow down the process of creative destruction? How do differences in manufacturing costs affect which...