In competitive markets, the marginal revenue product curve and marginal physical product curve have similar shapes because
A. The law of diminishing marginal utility and the law of diminishing returns imply a downward-sloping demand curve in the product market.
B. The demand curve for labor is the same for both the individual firm and the market as a whole.
C. The demand curve for the product slopes downward in accordance with the law of diminishing returns.
D. MRP = P × MPP.
Answer: D
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An indifference curve represents bundles of goods that a consumer
A) views as equally desirable. B) ranks from most preferred to least preferred. C) refers to any other bundle of goods. D) All of the above.
When money is used to set the value of goods such as cars, DVD players, and TVs, money is serving as a
A. medium of exchange. B. standard of value. C. store of value. D. standard of deferred payment.
Intermediate goods are goods and services used:
A. by the ultimate user. B. by state and local governments. C. as inputs. D. both as inputs and final goods.
Refer to the data. The average total cost of producing 3 units of output is:
A. $14.
B. $12.
C. $13.50.
D. $16.