Applying Level I Economics to Your Level I Studying

The most important topic in Econ is marginal revenue product: the idea that you maximize your profit (minimize your cost) when the ratio of marginal revenue product to input price for all inputs is the same: \[\frac{MRP_{1}}{P_{1}} = \frac{MRP_{2}}{P_{2}} = \cdots = \frac{MRP_{n}}{P_{n}}\] That is, it’s the most important if you can apply it to […]