For a Firm That Is a Price Taker in the Product

question 168

Multiple Choice

For a firm that is a price taker in the product market, all of the following are true except one.Which one is the exception?

• A)Marginal revenue product can be found by multiplying price by marginal product.
• B)Marginal revenue product is the change in total revenue that results from increasing the use of a resource by one unit, other things constant.
• C)Marginal revenue product is constant at the prevailing price.
• D)Increased output by the firm has no impact on the price of the product.
• E)The marginal revenue product curve declines because of diminishing marginal returns.

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Definitions:

KPI

Key Performance Indicators, which are measurable values used to evaluate the success of an organization, employee, or process.

Organizational Goals

Objectives or targets that an organization aims to achieve within a certain timeframe, guiding its strategic and operational activities.