A Decrease in the Productivity of a Factor of Production

question 55

Multiple Choice

A decrease in the productivity of a factor of production will

• A) shift its marginal revenue product curve to the right.
• B) shift its marginal revenue product curve to the left.
• C) cause a firm to move down the marginal revenue product curve.
• D) cause a firm to move up the marginal revenue product curve.

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Definitions:

Lug Nut Indicators

Safety devices that provide a visual indication if a wheel's lug nuts are loosening, commonly used in vehicles.

Pre-trip Inspection

A systematic safety check performed before operating a vehicle, especially commercial and heavy-duty vehicles, to ensure it is safe and compliant with regulations.

Contribution Margin

The selling price per unit minus the variable cost per unit, representing the portion of sales that helps cover fixed costs.