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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Related Book For
Essentials Of Economics
ISBN: 396414
2nd Edition
Authors: James D Gwartney; Richard Stroup; J R Clark
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