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

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4. 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 input. If resources are perfectly divisible, firms will expa nd their utilization of each input until the marginal revenue product of the resource is just equal to its price.

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