The rule for the optimal use of any input says that
A)when MRP is less than price, it pays to expand resource use.
B)when MRP is greater than price, it pays to expand resource use.
C)when MRP equals price, resource use should be cut back.
D)resources should be used only if MRP exceeds price.

Question

Quizplus · Accepted Answer

The rule for the optimal use of any input states that resources should be used only if MRP exceeds price. Therefore, when MRP is greater than price, it pays to expand resource use to maximize profits. Option B correctly states this rule.

The Rule for the Optimal Use of Any Input Says