6 points A. Profit maximization occurs where marginal revenue equals marginal co

Question

6 points   

A. Profit maximization occurs where marginal revenue equals marginal cost. B. Profit maximization occurs where the profit per unit of the last unit produced is close to and just equal to zero. C. Profit maximization occurs where the marginal revenue product of an input equals the marginal cost of employing or using that input. D. Profit maximization occurs where output is restricted below the point where the marginal social benefit of the last unit of production is just equal to the marginal social cost of making that unit.

Explanation / Answer

C. Profit maximization occurs where the marginal revenue product of an input equals the marginal cost of employing or using that input.

It does not depend on input;s marginal revenue product and cost

hence, ans:C

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