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PIT_PIT [208]
3 years ago
6

A profit-maximizing firm will not employ an additional unit of a resource if the marginal product of that unit is greater than t

he marginal cost of that unit. Suppose a firm uses skilled workers, unskilled workers, and machines in the production of cars.
A. True
B. False
Business
1 answer:
Lubov Fominskaja [6]3 years ago
4 0

Answer:

The Answer is A) True                                    

Explanation:

The marginal cost of production and marginal revenue are economic measures used to determine the amount of output and the price per unit of a product that will maximize profits. A rational company always seeks to optimize its profit, and the relationship between marginal revenue and the marginal cost of production helps to find the point at which this occurs. The point at which marginal revenue equals marginal cost maximizes a company's profit.

Cheers!

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