Profit maximization implies that firms will make input choices in a marginal way. Explain why the following marginal rules found in this chapter are specific applications of this general idea: a. MRL...

Profit maximization implies that firms will make

input choices in a marginal way. Explain why the

following marginal rules found in this chapter are

specific applications of this general idea:

a. MRL ¼ MEL

b. MPL MR ¼ MEL ¼ w

c. MVPL ¼ MEL ¼ w

d. MVPL ¼ w

e. MVPL ¼ MEL > w

If firms follow these various rules, will they also be

producing a profit-maximizing level of output?

That is, will they produce that quantity for

which MR ¼ MC? Will they also be minimizing

costs if they use these rules? Explain your answers

both intuitively and with algebra.