What is the optimization condition for economically efficient use of energy in production in the short run? a. The marginal revenue product equals the price of the input. b. The total revenue from the production equals the total cost of the

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 2.5P

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Question

What is the optimization condition for economically efficient use of energy in production
in the short run?
a. The marginal revenue product equals the price of the input.
b. The total revenue from the production equals the total cost of the input.
c. The average revenue from the production equals the price of the input.
d. Revenue is maximized

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