_____ involves equating the marginal revenue product of each resource to the _____ of that resource.
A) The marginal physical product; cost
B) Profit minimization; price
C) Price; cost
D) Profit maximization; price

Question

Quizplus · Accepted Answer

Profit maximization involves equating the marginal revenue product (MRP) of each resource to its price. This ensures that the cost of the resource is justified by the additional revenue it generates.

_____ Involves Equating the Marginal Revenue Product of Each Resource