If the Marginal Revenue Product Is Less Than the Price

question 95

True/False

If the marginal revenue product is less than the price of an input, then a profit-maximizing firm will increase the amount of the input.

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Definitions:

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by high unemployment, widespread poverty, and deflation.

Prohibition

A period in American history, specifically from 1920 to 1933, during which the manufacture, sale, and transportation of alcoholic beverages was legally prohibited.

Noble Experiment

A term that refers to the period of prohibition in the United States during the 1920s and early 1930s intended to reduce crime and corruption, improve health, and improve social morals.

Americans

Citizens of the United States of America or pertaining to the country itself.