Post Utme Afe Babalola University 2018 Economics Question 37

Practice objective / multiple choice question 37 from the 2018 Post Utme Afe Babalola University Economics examination.

Post Utme Afe Babalola University 2018 Economics Objective / Multiple Choice
Question 37 POST_UTME_AFE_BABALOLA_UNIVERSITY • 2018 • ECONOMICS • objective

A firm is producing a good at a point where the marginal revenue product of labor is equal to the marginal factor \cost of labor. What is the firm's optimal employment level?

Answer Options

Correct Answer A. The firm's optimal employment level is at the point where the marginal revenue product of labor is equal to the marginal factor \cost of labor.
B. The firm's optimal employment level is at the point where the marginal revenue product of labor is greater than the marginal factor \cost of labor.
C. The firm's optimal employment level is at the point where the marginal revenue product of labor is less than the marginal factor \cost of labor.
D. The firm's optimal employment level is at the point where the marginal revenue product of labor is equal to the marginal factor \cost of labor plus the opportunity \cost of labor.
Correct Answer
A
Correct Option:
The firm's optimal employment level is at the point where the marginal revenue product of labor is equal to the marginal factor \cost of labor.

About This Question

This is Post Utme Afe Babalola University 2018 Economics Question 37. It is one of the objective questions from the 2018 Post Utme Afe Babalola University Economics examination.

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