cost. Thus, does not give the highest possible profit.

Marginal product of labor, marginal revenue product of labor, and profit maximization

The general rule is that the firm maximizes profit by producing that quantity of output where marginal revenue equals marginal cost. The profit maximization issue can also be approached from the input side. That is, what is the profit maximizing usage of the variable input? To maximize profit the firm should increase usage of the input "up to the

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