If marginal revenue product is less than price of the input, the firm should use more of the input.
Answer the following statement true (T) or false (F)
False
You might also like to view...
At the start of a cost-push inflation,
A) the price level rises and real GDP does not change. B) the price level remains constant and real GDP increases. C) the price level rises and real GDP decreases. D) the price level remains constant and real GDP decreases. E) the price level and real GDP both increase.
Which of the following would increase aggregate supply?
A) increased training and education B) a reduction in input prices C) a discovery of new raw materials D) all of the above
The purchase of U.S. assets by foreigners is a:
a. capital inflow. b. capital outflow. c. current account deficit. d. unilateral transfer.
A hypothetical open economy has a marginal propensity to import (MPI) equal to 0.2 and a marginal propensity to consume equal to 0.7 . Assume that the economy is initially in equilibrium. What is the spending multiplier of this economy?
a. 2 b. 1.4 c. 0.7 d. 0.9 e. Cannot be determined with the given information