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Author Question: What is the profit-maximizing condition for a firm when trying to decide how much land touse ... (Read 47 times)

Davideckstein7

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on: Jun 29, 2018
What is the profit-maximizing condition for a firm when trying to decide how much land touse forproduction?
 
  What will be an ideal response?

Question 2

Refer to Figure 6-2. The absolute value of the price elasticity of demand at points a and b is 1. What is the value of Pb?
 
  A) 50 B) 40 C) 30 D) 20


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jaygar71

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A firm will pay for and use land as long as the revenue earned from selling the product produced on that land is sufficient to cover the price of the land. This means that the firm will use land up to the point where the marginal revenue product of land is equal to the price of land.

Answer to Question 2

B


Davideckstein7

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Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

scikid

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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