If a firm wants to maximize its profits, it should: a. equate the marginal revenue product for...
Question:
If a firm wants to maximize its profits, it should:
a. equate the marginal revenue product for each input to the price of the input.
b. hire unskilled labor rather than skilled labor since unskilled labor is cheaper.
c. hire lots of capital and very little labor since labor needs to be trained.
d. equate the marginal physical product for each input to the price of the input.
Profit:
Profit in accounting is a payment made to the owner due to a successful market creation strategy. Profit is a percentage of output representing the owner's premium price in the marketplace generation pay plan interplay. In the wealth inequality process, the profit is the portion of money generation that the entrepreneur can maintain to themselves.
Answer and Explanation: 1
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View this answerThe correct option is a) equate the marginal revenue product for each input to the price of the input
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Profit Maximization: Definition, Equation & Theory
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Chapter 24 / Lesson 6
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Learn the profit maximization definition, its importance, and explore the profit maximization theory. See how to calculate profit maximization with examples.
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