The Profit-Maximizing Rule for a Firm Hiring Both Labor (L) $\mathrm { MP } _ { L } / \mathrm { P } _ { L } = \mathrm { MP } C / \mathrm { P } C$

question 9

Multiple Choice

The profit-maximizing rule for a firm hiring both labor (L) and capital (C) under conditions of imperfect competition is

• A) \(\mathrm { MP } _ { L } / \mathrm { P } _ { L } = \mathrm { MP } C / \mathrm { P } C\)
• B)\(\mathrm{MP}_{L} / \mathrm{MP}_{C}=\mathrm{MRC}_{C} / \mathrm{MRP}_{L}\)
• C) \(\mathrm{MRP} L / \mathrm{MRC} L=\mathrm{MRP} C / \mathrm{MRC} C=1 .\)
• D) \(\mathrm { MRC } _ { L } / \mathrm { MP } _ { L } = \mathrm { MRC } _ { C } / \mathrm { MP } _ { C } = 1\)