A Firm Is Hiring Resources X,Y,and Z in the Profit-Maximizing

question 108

Multiple Choice

A firm is hiring resources X,Y,and Z in the profit-maximizing amounts when:

• A) MRP_x/P_x equals MRP_y/Py equals MRP_z/P_z equals 1.
• B) the sum of the MRPs of the three resources is at a minimum.
• C) the marginal revenue productivity of all three resources is the same.
• D) the marginal revenue product of the last dollar spent on each of the three resources is the same.

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Definitions:

Iris

The colored part of the eye that controls the size of the pupil and thus the amount of light that enters the eye.

Light Entry

The process or manner by which light enters an area or passes through a medium.

Young-Helmholtz Theory

A theory of color vision that proposes the presence of three types of color receptors in the eye, each sensitive to red, green, or blue light.

Red-Sensitive

Red-sensitive refers to the capacity of certain cells in the retina, called cones, that are especially responsive to red light, playing a key role in color vision.