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

---

Definitions:

Bank

A financial institution licensed to receive deposits and make loans, and may offer various other financial services.

Negotiable

Capable of being discussed and terms arranged; a check is a negotiable instrument drawn against deposited funds to pay a specified amount to a person or business upon demand.

Form Of Phrase

The particular way in which a phrase is constructed or expressed.

Pay To The Order Of

A phrase written on checks to designate who has the authority to receive the amount specified on the check.