If the marginal revenue product of land is greater than its price, a firm should
A. use less land.
B. decrease the price it is willing to pay for land.
C. try to decrease the productivity of land.
D. use more land.
Answer: D
You might also like to view...
The social costs associated with some policy initiative are
a. readily identified b. described as the spending needed to compensate society for the resources used so that its utility level is maintained c. must account for all price, output, and income effects linked to that initiative d. all of the above e. (b) and (c) only
When an economy is above full employment and the government has a budget deficit, that deficit
A) is less than the structural deficit. B) exceeds the structural deficit. C) is equal to the cyclical deficit minus the structural deficit. D) is equal to the cyclical deficit. E) is equal to the structural deficit minus the cyclical deficit.
?
In Exhibit 3-15, if the market price of good X is initially $1.50, a movement toward equilibrium requires:
A. no change, because an equilibrium already exists. B. the price to fall below $1.50 and both the quantity supplied and the quantity demanded to fall. C. the price to remain the same, but the supply curve to shift to the left. D. the price to fall below $1.50, the quantity supplied to fall, and the quantity demanded to rise.
The effects of a change in government purchases is multiplied throughout an economy...
What will be an ideal response?