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Author Question: A profit-maximizing firm will never hire that quantity of a factor of production for which that ... (Read 118 times)

nevelica

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on: Jul 1, 2018
A profit-maximizing firm will never hire that quantity of a factor of production for which that factor has an increasing marginal productivity because
 a. it would not be maximizing output.
  b. it would not be maximizing the productivity of labor.
  c. it would not be minimizing costs.
  d. it would not be maximizing profits.

Question 2

If a profit-maximizing firm is a price taker in both the input and output markets, its marginal revenue product of labor is given by
 a. the price of its output times labor's marginal physical productivity.
  b. the marginal value product of labor.
  c. the marginal revenue product of capital times the ratio of the wage rate to the rental rate on capital.
  d. all of the above.


chreslie

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Reply #1 on: Jul 1, 2018
Answer to Question 1

d

Answer to Question 2

d


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nevelica

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Reply #2 on: Jul 1, 2018
Thank you


chreslie

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Reply #3 on: Jul 1, 2018
No problemo


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