Asked by Victoria Montanez on Jun 03, 2024
Verified
Producers should hire resources until the total output of each is equal.
Total Output
The total quantity of goods or services produced by an economic entity in a given period.
- Understand the conditions under which hiring additional labor is cost-effective or profit-maximizing.
Verified Answer
PM
Pratishtha MathurJun 05, 2024
Final Answer :
False
Explanation :
Producers should hire resources until the marginal product of each resource is equal to its marginal cost, not until the total output of each is equal. This principle ensures the most efficient allocation of resources.
Learning Objectives
- Understand the conditions under which hiring additional labor is cost-effective or profit-maximizing.