According to the Principle of Marginal Productivity, If

question 22

Multiple Choice

According to the principle of marginal productivity, if

• A) the product price is less than MRP, the firm is using too little of the input.
• B) the price of an input rises, the quantity demanded of the input will increase.
• C) MRP is greater than product price, the firm should reduce the use of the input.
• D) price of the input equals MRP, the firm is maximizing profit.

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Definitions:

Mode of Transportation

Various means used for moving people or goods from one place to another, such as road, air, or sea.

Delivery Speed

The rate at which a company can fulfill customer orders from the point of order placement to delivery, directly impacting customer satisfaction.

Holding Cost

The expenses associated with storing unsold goods or materials, including warehousing, insurance, and deterioration or obsolescence.

Shipping Cost

The expense incurred to transport goods from one place to another, typically paid by the seller or the buyer.