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:

Monthly Cash Flows

The net amount of cash and cash-equivalents being transferred into and out of a business in a given month.

Delayed

Pertaining to something that has been postponed or set to occur at a later time than originally planned.

Monthly

Pertaining to something that occurs, repeats, or is calculated on a monthly basis.