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Production Theory

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Firms will employ an input up to the point where ?

a) the wage rate equals the productivity of capital.
b) its marginal cost equals its marginal product.
c) the input's price equals its marginal revenue product.
d) the input's price equals its marginal product.

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Solution Summary

Solution selects the correct option.

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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