Question

As a rule, a profit-maximizing restaurant owner employs each factor of production up to the point at which the value of the marginal product of the _____ unit of the factor employed is _____ that factor's price.

Answer 1

Answer:

last

equal

Explanation:

A profit maximising producer would produce up to the point where the marginal product of the last unit of factor employed equals the factors price.

After, this point is reached, diminishing returns sets in