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The equation MP L / PL = MP C / PC:

a. designates the MR = MC level of output.
b. assumes imperfect competition in the hiring of labor and capital.
c. is a sufficient condition for the maximization of profits.
d. is a necessary, but not sufficient, condition for the maximization of profits.

Respuesta :

Answer: D. is a necessary, but not sufficient, condition for the maximization of profits.

Explanation:

In the labor market, the condition for equilibrium is that marginal revenue product of labor will be equal to the wage rate, abd also that MPL/PL=MPK/PK.

It should be noted that the equation MPL/PL = MPC/PC is a necessary, but not sufficient, condition for profit maximization.

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