If the marginal revenue product of an input is greater than its price, the
A. firm should decrease its use of the input to bring the two values into equality.
B. firm should raise the price of the product.
C. firm should increase the use of the input to bring the two values into equality.
D. firm should search for another input to use in its production.
Answer: C
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Which group is responsible for the policy decision of changing the money supply?
A. Federal Open Market Committee B. Federal Advisory Council C. Office of Management and Budget D. Thrift Advisory Council
For the same sized substitution effect, own-price demand curves for inferior goods are steeper than own price demand curves for normal goods.
Answer the following statement true (T) or false (F)
When effects are irreversible, it may be sensible to treat their possible causes even if they cannot be identified with certainty
Indicate whether the statement is true or false
Suppose the economy is experiencing frictional unemployment of 1 percent, structural unemployment of 3 percent and cyclical unemployment of 4 percent. What is the natural unemployment rate?
A) 5 percent B) 3 percent C) 8 percent D) 7 percent E) 4 percent