The marginal productivity principle implies that
a. quantity demanded of an input normally declines as the input price falls.
b. at equilibrium, profit from the last unit of input will be zero.
c. for maximizing profit, marginal revenue product should be greater than price.
d. marginal productivity of inputs increase when price of inputs increase.
b
You might also like to view...
The "underground economy" is also referred to as
A) the informal sector. B) the halfway economy. C) the net domestic product economy. D) the formal sector.
Using the "rule of 2," which of the following variables can be deemed statistically significant?
A) PA B) PB C) I D) All of the above E) None of the above
Which of the following would shift the AS curve downward?
a. A decrease in the price level b. A decrease in world oil prices. c. An increase in world oil prices. d. A natural disaster that raises unit costs for all firms. e. A loss of technological capability.
If a country has a fixed exchange rate, it:
A. has a value that is set by the government. B. helps attract foreign investment and gives businesses that depend on overseas trade more confidence to invest. C. allows for more predictability and stability. D. All of these statements are true.