Asked by
Mshary Alrashedi
on Dec 19, 2024
Verified
The equation MP ₗ / Pₗ = MP C / Pc
A) designates the MR = MC level of output.
B) assumes imperfect competition in the hiring of labor and capital.
C) is a sufficient condition for the maximization of profits.
D) is a necessary, but not sufficient, condition for the maximization of profits.
Maximization of Profits
The process by which a company determines the price and output level that generates the most profit.
MP
Marginal Productivity (MP) refers to the additional output resulting from the use of one more unit of a production factor, keeping other inputs constant.
Imperfect Competition
All market structures except pure competition; includes monopoly, monopolistic competition, and oligopoly.
- Appreciate the key significance of resources' marginal productivity in establishing how resources are distributed and production costs are assessed.
Verified Answer
KH
Learning Objectives
- Appreciate the key significance of resources' marginal productivity in establishing how resources are distributed and production costs are assessed.