Author Question: A profit-maximizing firm will employ a resource up to the point where a. its marginal resource cost ... (Read 68 times)

iveyjurea · **on:** Jun 30, 2018

A profit-maximizing firm will employ a resource up to the point where
a. its marginal resource cost equals its marginal revenue product
b. its marginal resource cost equals its marginal product
c. its marginal resource cost equals the marginal revenue of the output
d. its marginal resource cost equals the price of the resource
e. the price of the resource equals the marginal revenue of the output

Question 2

If consumption of education creates a positive externality, then in order to increase efficiency relative to the outcome determined by private decisions,
a. more education must be produced
b. the same amount of education must be produced, and the price should be lower
c. less education must be produced, and the price should be higher
d. less education must be produced, and the price should be lower
e. less education must be produced at the same price