A Firm Will Maximize Profits by Employing the Quantity of Each

question 33

Multiple Choice

A firm will maximize profits by employing the quantity of each input where the marginal:

• A) revenue product of each input equals its price.
• B) revenue equals the price of each input.
• C) product of each input is equal.
• D) product of each input equals its price.

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Definitions:

Behavioral Economists

Researchers who study the effects of psychological, cognitive, and emotional factors on economic decision-making.

Giving To Charity

The act of donating money, goods, or time to support those in need or to promote a cause.

Precommitment Device

A strategy or mechanism used to constrain one's future actions or decisions to help achieve a long-term goal or avoid impulsive behavior.

Behavioral Economists

Researchers in economics focusing on how psychological, cognitive, emotional, cultural, and social aspects influence the economic choices made by individuals and institutions.