Maximizing profit by hiring labor

The firm maximizes profit by hiring the labor at a point where labor’s: (i) Marginal physical product equal its average physical product. (ii) Marginal revenue product equivalents its marginal resource cost. (iii) Rate of exploitation is maximum. (iv) Wage rate equivalents the price of output. (v) Net revenue is maximized.

What is the right answer?

View Complete Question

Related Questions in Microeconomics

Q : Reinforces the substitution effect For

For normal goods which experience price changes, then the income effect: (i) Recognizes how higher money income influences demands for goods. (ii) Invalidates the diminishing marginal utility law. (iii) Offsets the substitution effect. (iv) Reinforces the substitution

Q : Price ceilings and price floors Price

Price ceilings and price floors: 1) cause surpluses and shortages respectively. 2) make the rationing function of free markets more efficient. 3) interfere with the rationing function of prices. 4) shift demand and supply curves and therefore have no effect on the rat

Q : Differentiate perfect and monopoly

Differentiate between perfect competition and monopoly competition?

Q : Fixed cost in long run Can there be

Can there be certain fixed cost in long run? If not why? Answer: No, there can’t be any fixed cost in long run. The main reason is that there is no fixed inpu

Q : Higher income elastic demand for

For environmental quality the demand is income elastic for most people, that implies that prosperity and higher incomes tend to: (w) increase people’s concerns about air, water, and noise pollution. (x) reduce efforts to solve pollution problems

Q : Unitarily price elastic supply for

Supply is unitarily price elastic for all quantities and prices upon: (i) supply curve S1. (ii) supply curve S2. (iii) supply curve S3. (iv) supply curve S4. (v) supply curve S5.

Q : Introduction of marginal utility The

The marginal utility (MU) of a good: (1) Was first introduced by Adam Smith. (2) Is simply measured in dollars. (3) Is determined by society as an entire. (4) Reflects subjective preferences. Can someone help me in getting through

Q : Definition of Featherbedding Can

Can someone help me in finding out the right answer from the given options. The Featherbedding is: (i) Practiced by the migratory ducks and geese merely. (ii) Practiced by the female song birds each and every spring. (iii) Rousingly substituted by the water-bedding. (

Q : Risk and Uncertainty of Probability

If estimating the nature of a probability function for an event entails considerable guesswork since experience along with the event is more sporadic or rare which any estimates are extremely speculative, in that case we confront a concept Fra

Q : Equilibrium moves market reduce in

When equilibrium moves from point a to point b, the simple market experiencing a reduce in supply is demonstrated within: (w) Panel A. (x) Panel B. (y) Panel C. (z) Panel D.

Discover Q & A

Leading Solution Library

Avail More Than 1455384 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1925276
Asked

3,689

Active Tutors

1455384

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment