A firm is hiring resources X, Y, and Z in the profit-maximizing amounts when A)MRP x/ Pₓ equals MRP y/ Pᵧ equals MRP z/ P_z equals 1. B)the sum of the MRPs of the three resources is at a minimum. C)the marginal revenue productivity of all three resources is the same. D)the marginal revenue product of the last dollar spent on each of the three resources is the same.

Question

Quizplus · Accepted Answer

The profit-maximizing condition is that the marginal revenue product of each resource divided by its price should be equal to 1.

A Firm Is Hiring Resources X, Y, and Z in the Profit-Maximizing