A Profit-Maximizing Firm Will Hire an Additional Unit of a Resource

question 20

Multiple Choice

A profit-maximizing firm will hire an additional unit of a resource as long as the

• A)marginal product of the resource is greater than the marginal resource cost
• B)marginal product of the resource is less than the marginal resource cost
• C)marginal revenue product of the resource is greater than the marginal resource cost
• D)marginal revenue product of the resource is less than the marginal resource cost
• E)price of the resource is less than the marginal resource cost

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Definitions:

Mercury (II) Oxide

Mercury (II) Oxide is an inorganic compound with the formula HgO, known for its red or orange color, used historically in the production of mercury metal.

Oxygen Gas

A diatomic molecule consisting of two oxygen atoms (O2), essential for most forms of life on Earth to perform cellular respiration.

Liberating Mercury

The process of releasing mercury, typically from its ores or as a byproduct of industrial processes, which can lead to environmental contamination.

HgO

HgO refers to mercury(II) oxide, a solid compound consisting of mercury and oxygen, known for decomposing into mercury and oxygen gas when heated.