D) Depreciate A company uses labor and capital in its production of industrial-g
ID: 325226 • Letter: D
Question
D) Depreciate A company uses labor and capital in its production of industrial-grade aluminum What is the comp for its production process? ontinue producing as long as the marginal resource cost equals the marginal revenue product. (A) C (B) Continue producing as long as the marginal resource cost exceeds the marginal revenue product. C) Continue producing as long as the marginal product of labor equals the marginal revenue product. D) Continue producing as long as the marginal labor cost exceeds the marginal revenue product.Explanation / Answer
A company uses labor and capital in its production of industrial-grade aluminum. What is the company’s optimal decision rule for it’s production process?
(A). Continue producing as long as the marginal resource cost equals the marginal revenue product.
To maximize net benefit, increase or decrease the level of activity until the marginal benefit from the activity equals the marginal cost of the activity.
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