A Condition for the Profit- Maximizing Use of Any Factor

question 86

Multiple Choice

A condition for the profit- maximizing use of any factor of production is (where MP = marginal product,w = the price of a factor of production,p = price of one unit of the firm's output,MR = marginal revenue,MC = marginal cost,MRP = marginal revenue product) :

• A)MR = MRP P
• B)MC = MR × w
• C)w = MP × p
• D)MRP = MR × MC
• E)MRP = MP × p

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Definitions:

Redesigning Jobs

The process of modifying job roles and responsibilities to improve efficiency, employee satisfaction, or adapt to organizational changes.

Long-Term Productivity

The sustained ability of an individual, company, or economy to generate goods and services efficiently over a long period.

Total Compensation Valuation

The comprehensive assessment of the total monetary and non-monetary pay provided to an employee, which includes wages, bonuses, benefits, and any other form of compensation.

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