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  2. Marginal factor cost - Wikipedia

    en.wikipedia.org/wiki/Marginal_factor_cost

    A firm that wants to optimize its profits hires each factor up to the point at which its marginal factor cost equals its marginal revenue product (MFC=MRP). [ 2 ] Marginal factor cost is an important concept in economics, as it helps to determine the optimal level of production for a good or service.