A Firm Will Hire a Unit of Input Up to the Point

question 95

Multiple Choice

A firm will hire a unit of input up to the point where

• A) the marginal cost of the input equals the marginal cost of output.
• B) the marginal revenue product of the input is equal to the marginal factor cost of the input.
• C) the price of the input is equal to the price of output.
• D) the marginal physical product of the input is equal to the price of output.

Analyze and construct loan repayment schedules incorporating principal and interest components.

Calculate and analysis investment returns over different periods, including investments in T-bills and commercial paper.

Understand the financial implications of premature settlement proposals on promissory notes and investments.

Evaluate and decide between investment options based on their simple interest yield.