Asked by
Alexiis Danyelle
on Nov 05, 2024
Verified
A competitive firm will use a factor of production as long as its marginal revenue product exceeds its unit cost.
Factor Of Production
An input used in the production of goods or services in order to make an economic profit. The primary factors include land, labor, capital, and entrepreneurship.
Marginal Revenue Product
The increased earnings resulting from the utilization of one more unit of an input or resource in production.
- Acquire knowledge about the concept of marginal revenue product (MRP) and its role in shaping decisions about labor and land employment by enterprises.
Verified Answer
JW
Learning Objectives
- Acquire knowledge about the concept of marginal revenue product (MRP) and its role in shaping decisions about labor and land employment by enterprises.