Asked by
Nicole Dingess
on Dec 19, 2024
Verified
A firm is hiring resources X, Y, and Z in the profit-maximizing amounts when
A) MRP x/ Pₓ equals MRP y/ Pᵧ equals MRP z/ Pz equals 1.
B) the sum of the MRPs of the three resources is at a minimum.
C) the marginal revenue productivity of all three resources is the same.
D) the marginal revenue product of the last dollar spent on each of the three resources is the same.
Profit-Maximizing Amounts
The levels of production or pricing at which a firm achieves the highest possible profit.
MRP
Marginal Revenue Product, which is the additional revenue generated from hiring an additional unit of a resource or input.
Resources
Assets, materials, and inputs used to produce goods and services.
- Apprehend the circumstances that lead to optimal profit through resource allocation in competitive environments.
Verified Answer
CK
Learning Objectives
- Apprehend the circumstances that lead to optimal profit through resource allocation in competitive environments.