Firms Should Hire Additional Units of a Resource as Long

question 152

Multiple Choice

Firms should hire additional units of a resource as long as the

• A) marginal product of the resource exceeds the price of the resource multiplied by the quantity of output produced.
• B) marginal product of the resource is less than the price of the resource.
• C) price of the output produced is positive.
• D) marginal revenue product of the resource exceeds the cost of employing an additional unit of the resource.

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Definitions:

Subsistence Levels

The minimum level of income or resources that is considered adequate to maintain life and health.

Efficient Energy Usage

The practice of utilizing energy resources in a way that maximizes output while minimizing waste and costs.

Electricity Generation

The process of producing electric power from sources of primary energy, such as coal, nuclear, wind, or solar.

Economic Challenges

Issues or difficulties related to the economic system of a country or the global economy that affect financial stability, growth, and prosperity.