In the short run,finding the optimal amount of variable input involves which relationship?
A)MP = MC
B)AP = MP
C)MP = 0
D)MRP = MFC

Question

Quizplus · Accepted Answer

In the short run, finding the optimal amount of variable input involves the relationship where the marginal revenue product (MRP) is equal to the marginal factor cost (MFC). This ensures that the cost of adding one more unit of input equals the revenue generated by that additional unit, optimizing production efficiency.

In the Short Run,finding the Optimal Amount of Variable Input