MCQ 36 The marginal productivity theory of factor pricing suggests that a firm should hire additional units of capital up to the point at which: A the marginal revenue product of capital is equal to the prevailing cost of capital the marginal revenue product of capital reaches a maximum C the marginal revenue product of capital is zero D the marginal revenue product of capital is constant at the margin of production E I do not want to answer this question. F marginal cost is zero

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
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MCQ 36
The marginal productivity theory of factor pricing suggests that a firm should hire additional units of capital up to the point at which:
A
the marginal revenue product of capital is equal to the prevaling cost of capital
the marginal revenue product of capital reaches a maximum
C
the marginal revenue product of capital is zero
the marginal revenue product of capital is constant at the margin of production
E
I do not want to answer this question.
F
marginal cost is zero
Transcribed Image Text:MCQ 36 The marginal productivity theory of factor pricing suggests that a firm should hire additional units of capital up to the point at which: A the marginal revenue product of capital is equal to the prevaling cost of capital the marginal revenue product of capital reaches a maximum C the marginal revenue product of capital is zero the marginal revenue product of capital is constant at the margin of production E I do not want to answer this question. F marginal cost is zero
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