If a Firm Wants to Maximize Profits It Should

question 81

Multiple Choice

If a firm wants to maximize profits it should

• A) hire each factor of production up to the point at which the marginal physical product per last dollar spent is equalized.
• B) hire each factor of production up to the point at which the marginal revenue product per last dollar spent is equalized.
• C) hire each factor of production up to the point at which the marginal factor cost per last dollar spent is equalized.
• D) hire the same number of units of all inputs.

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Definitions:

Participants

Individuals who take part or are involved in an activity or event, often referred to in research studies.

Simulated Managerial Work

Activities or exercises designed to mimic the tasks and decisions faced by managers, used for training or research purposes.

Assessment Strategy

A plan or approach for measuring the effectiveness of a program, process, or educational setting, often through the collection and analysis of data.

Social-Cognitive

Relating to a psychological perspective that emphasizes the role of cognitive processes in understanding social behavior.