The Profit-Maximizing Rule for Employment of a Variable Input Is

question 33

True/False

The profit-maximizing rule for employment of a variable input is to employ that input until its marginal revenue product is less than the marginal cost of the input, as long as the marginal cost of the input would be less than or at most equal to the marginal revenue product of the input for a greater quantity of the input.

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Definitions:

Aggregate

A collection or sum of many individual elements, items, or variables often used in the context of data analysis or statistics.

Category

A class or division of people or things regarded as having particular shared characteristics or attributes.

Authority

The right or power to enforce rules, judgments, or command influence over others.

Max Weber

A German sociologist, philosopher, and political economist whose theories laid the groundwork for modern sociology, including the concept of the "Protestant work ethic" and the role of bureaucracy in society.