The marginal productivity principle implies that a quantity

The marginal productivity principle implies that

a. quantity demanded of an input normally declines as the input price falls. b. at equilibrium, profit from the last unit of input will be zero. c. for maximizing profit, marginal revenue product should be greater than price. d. marginal productivity of inputs increase when price of inputs increase.

Solution

Answer:- The marginal productivity principle implies that

Correct Answer:- b. at equilibrium, profit from the last unit of input will be zero.

Reason:- At equilibrium point, MR=MC thus profit will be zero.