The marginal revenue product of an input in a competitive market decreases as a firm increases the quantity of the input employed because of the:
A. Law of diminishing returns
B. Law of diminishing marginal utility
C. Homogeneity of the product
D. Free mobility of resources
A. Law of diminishing returns
You might also like to view...
Which of the following was the average yearly increase in U.S. labor productivity growth between the 1870s and the early years of the 21st century?
a. About 1 percent b. About 2 percent c. About 5 percent d. About 10 percent e. Between 0 and 1 percent
The product supplied by a monopoly firm has
a. a few substitutes. b. no close substitutes. c. a large number of substitutes. d. two or three close substitutes.
The article "Samsung Stung by Apple Moves" related to the price cuts for the iPhone indicates that
A. The percentage change in the quantity demanded for the substitute cell phones was increasing less than the percentage change in the price. B. The demand for the iPhone was inelastic. C. The cross-price elasticity for iPhones and other cell phones produced by Samsung was negative. D. Apple lowered the price for the iPhone because the cross-price elasticity between it and the other competitors was positive.
Refer to the scenario above. What is the value of having the extended warranty during the third year of ownership?
A) $15.03 B) $24.88 C) $44.66 D) $50.40