The marginal revenue product of an input tends to decrease as:
A. the price of the input decreases.
B. the price of output increases.
C. productivity increases.
D. more of the input is used.
Answer: D
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Each of the following is a source of financial capital for a corporation EXCEPT
A) issuing new stock. B) reinvestment of profit or retained earnings. C) issuing bonds or borrowing funds from a bank. D) dividends.
If a 10 percent increase in income induced a group of consumers to reduce their yearly purchases of eggs by 5 percent, for these consumers,
a. the income elasticity of eggs equals approximately 1.05. b. the income elasticity of eggs is 0.5. c. eggs are a luxury good. d. eggs are an inferior good.
Which country has the highest health care spending as a percent of gross domestic product?
a. Japan b. Switzerland c. Canada d. Germany e. United Kingdom
For a perfectly competitive firm, when P = MC = ATC, the most profit the firm can earn is zero.
Answer the following statement true (T) or false (F)