The Equation MPL / PL = MPC / PC

question 21

Multiple Choice

The equation MPL / PL = MPC / PC

• A)designates the MR = MC level of output.
• B)assumes imperfect competition in the hiring of labor and capital.
• C)is a sufficient condition for the maximization of profits.
• D)is a necessary, but not sufficient, condition for the maximization of profits.

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Definitions:

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Interest calculated or paid on a debt or investment on a monthly basis.

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