Which of the Following Is True of Marginal Revenue Product $\times$

question 29

Multiple Choice

Which of the following is true of marginal revenue product (MRP) and marginal product (MP) ?

• A) MRP = MP \(\times\) price, whether the firm is a price searcher or not.
• B) MRP = MP \(\times\) price only if the firm is a price searcher.
• C) MRP = MP \(\times\) price only if the firm sells in a perfectly competitive market.
• D) MRP = MP \(\times\) marginal cost only if the firm is a price searcher.
• E) MRP = MP/price only if the firm is a price taker.