A Competitive Employer Will Hire Inputs Up to the Point

question 80

Multiple Choice

A competitive employer will hire inputs up to the point where the

• A)marginal product of the input reaches a maximum.
• B)price of the input equals the price of the output.
• C)price of the input equals the marginal product of the input.
• D)price of the input equals the marginal revenue product of the input.

---

Definitions:

Capital

Resources made and used by people to produce and distribute goods and services; includes tools, machinery, and buildings.

Interest Rates

Charges applied on borrowed money or earned through deposits, varying according to the type, term, and risk associated with the financial product.

Present Value

The present value of a future sum of money or series of cash flows, discounted at a certain rate of return.

Expected Costs

The anticipated expenses associated with the production of goods or services or the undertaking of an activity, based on historical data, trends, and analysis.