5 Profit-maximizing firms will hire additional units of a resource as long as the marginal revenue product

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5 Profit-maximizing firms will hire additional units of a resource as long as the marginal revenue product of the resource exceeds its hiring cost, usually the price of the resource. If resources are perfectly divisible, firms will expand their utilization of each resource until the marginal revenue product of each resource is just equal to its price.

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Essentials Of Economics

ISBN: 396414

2nd Edition

Authors: James D Gwartney; Richard Stroup; J R Clark

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