A profit-maximizing firm will continue to employ land until
A) MPLAND = PLAND.
B) MRPLAND = 0.
C) MRPLAND = MPLAND.
D) MRPLAND = PLAND.

Question

Quizplus · Accepted Answer

A profit-maximizing firm will employ land until the marginal revenue product of land (MRPLAND) equals the price of land (PLAND), ensuring that the cost of employing an additional unit of land is equal to the revenue generated by it.

A Profit-Maximizing Firm Will Continue to Employ Land Until