To Maximize Its Profit for a Particular Quantity of Output,a

question 61

Multiple Choice

To maximize its profit for a particular quantity of output,a firm should equate the

• A) total amount spent on each of its inputs.
• B) marginal product of each of its inputs.
• C) average product of each of its inputs.
• D) marginal product with the average product of each of its inputs.
• E) marginal product of a dollar's worth of each input.

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Definitions:

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community.

Education and Knowledge

Education and knowledge pertain to the process of acquiring information, skills, values, and understanding through experiences, schooling, and study, which collectively empower individuals and societies.

Factor Distribution

Refers to the way in which income is distributed among the factors of production, typically labor, capital, and land.

Human Capital

The combined abilities, expertise, or other non-physical assets belonging to people that can be leveraged to generate economic worth.