To maximize profit, a firm O A. uses the quantity of land at which the rental rate equals the value of marginal product of land OB. uses the quantity of capital at which the suppliers' expected profit equals the value of marginal product of capital OC. uses the quantity of capital at which the marginal revenue equals the value of marginal product of capital OD. balances the rental rate of capital against the wage rate of labor

To maximize profit, a firm O A. uses the quantity of land at which the rental rate equals the value of marginal product of land OB. uses the quantity of capital at which the suppliers' expected profit equals the value of marginal product of capital OC. uses the quantity of capital at which the marginal revenue equals the value of marginal product of capital OD. balances the rental rate of capital against the wage rate of labor

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 6CQQ

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