The Rule for the Optimal Use of Any Input Says

question 36

Multiple Choice

The rule for the optimal use of any input says that

• A)when MRP is less than price, it pays to expand resource use.
• B)when MRP is greater than price, it pays to expand resource use.
• C)when MRP equals price, resource use should be cut back.
• D)resources should be used only if MRP exceeds price.

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Definitions:

Sergei's Profit

A hypothetical measure of earnings named for an individual, illustrating the net gain after subtracting expenses from revenue.

Market Price

The ongoing transaction price for purchasing or offloading an asset or service.

Profit Maximization

A business's objective to achieve the highest possible profits through the management of revenues and costs, often through adjusting price, output, and production efficiency.

All-Natural Ice Cream

Ice cream made using only natural ingredients, without artificial flavors, colors, or preservatives.