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If the marginal revenue product of a resource is less than its marginal cost, then a firm can increase its profits by employing an additional unit of the resource. True False
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If the marginal revenue product of a resource is less than its marginal cost, then a firm can increase its profits by employing an additional unit of the resource. True False

User Khaled Dehia
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Answer:

True

Step-by-step explanation:

Because marginal costs consist of fixed costs and variable costs, with the utilization of an external resource unit, a business may increase its benefit. As fixed costs are fixed in the manufacturing process, due to economies of scale, the overall fixed cost is decreased by increasing the amount of production generated.

User CarpeNoctem
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