Firms Should Hire Additional Units of a Resource as Long

question 56

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 an additional unit of the resource.

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Definitions:

Preventive Maintenance

Routine maintenance, inspections, and servicing performed on equipment, machinery, or systems to prevent unexpected failures or breakdowns.

Product Reliability

The likelihood that a product will perform its intended function without failure over a specified period.

Accelerated Testing

A testing methodology that speeds up the normal use rate of a product to quickly observe potential failures and improve its reliability over its lifetime.

FR(%)

A notation often representing failure rate percentage, signifying the likelihood of a component or system failing within a specific time period.