A Firm Will Hire Additional Units of Any Input Up

question 28

Multiple Choice

A firm will hire additional units of any input up to the point where

• A)the marginal productivity of the input is maximized.
• B)the marginal cost of employing the input is minimized.
• C)the expense of employing the last unit is equal to the revenue brought in by the last unit.
• D)the revenue brought in by the input is maximized.

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Definitions:

Mutually Exclusive

A condition where two events cannot both occur at the same time; the occurrence of one event excludes the possibility of the other.

Simultaneously

Occurring, operating, or done at the same time.

Outcomes

Outcomes refer to the results or effects of an action, intervention, or experiment, often used in the context of assessing the effectiveness of a particular strategy or treatment.

Probability

The measure of the chance that an event will occur, expressed as a number between 0 and 1.