Use the Following Statements to Answer This Question: I

question 78

Multiple Choice

Use the following statements to answer this question: I. Under profit maximization, the quantity of labor used in production is optimal if MR = w/MP_L.
II) The expression MR = w/MPL implies that the revenue earned from the last unit of output produced equals the marginal cost of the last unit of output.

• A) I and II are true.
• B) I is true and II is false.
• C) II is true and I is false.
• D) I and II are false.

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Definitions:

Management Participation

The involvement or active engagement of management in the day-to-day operations and decision-making processes of a business.

Duty Between Partners

The obligations and responsibilities partners have towards each other in a partnership, including honesty, fairness, and loyalty.

Sole Proprietorship

A business structure in which a single individual both owns and operates the business, bearing unlimited liability for its debts.

Major Shareholder

An individual or entity that owns a significant percentage of a company's shares, exerting influence or control over its management.