A Profit-Maximizing Firm Should Hire an Input as Long as the

question 110

Multiple Choice

A profit-maximizing firm should hire an input as long as the

• A) firm can increase its total revenue.
• B) price of the input doesn't exceed the price of the other inputs used in the firm's production.
• C) marginal revenue product of the input is at least as much as the cost of hiring the input.
• D) marginal revenue product of the input is greater than the marginal revenue product of other inputs the firm is using.

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Definitions:

Processing Methods

Techniques or procedures used to transform raw data or materials into a final product or outcome.

Accounting Information

Data related to the financial transactions and status of a company, used by stakeholders to make economic decisions.

Accounting System

A structured process of collecting, recording, summarizing, and reporting financial transactions of a business or individual.

Correct Order

The proper sequence or arrangement of steps or stages.