Asked by
Dayna Butler
on Nov 26, 2024
Verified
A firm should reduce its employment of a resource whose marginal resource cost exceeds its marginal revenue product.
Marginal Resource Cost
Marginal resource cost is the additional cost incurred by producing one more unit of a good or service.
Marginal Revenue Product
The extra income produced by the use of an additional unit of a resource, like labor or capital.
- Comprehend the decision-making process regarding employment of resources based on their marginal costs and marginal revenue products.
Verified Answer
CL
Learning Objectives
- Comprehend the decision-making process regarding employment of resources based on their marginal costs and marginal revenue products.
Related questions
If a Firm Pays Labor $5 and Receives an MP ...
Price and Marginal Revenue Are Identical for an Individual Purely ...
Marginal Revenue Is the Addition to Total Revenue Resulting from ...
The Following Table Applies to a Purely Competitive Industry Composed ...
All Perfectly Competitive Fast-Food Firms Are Hiring the Profit-Maximizing Quantity ...