If the Marginal Revenue Product of an Input Exceeds the Marginal

question 140

Multiple Choice

If the marginal revenue product of an input exceeds the marginal factor cost of the input, the firm

• A) should hire less of the input.
• B) is maximizing profit.
• C) is not on its marginal cost curve.
• D) should increase its use of the input.

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Definitions:

Psychopathy

A personality disorder characterized by persistent antisocial behavior, impaired empathy, and often, bold, disinhibited, and egotistical traits.

Egocentricity

The tendency to view everything in relation to oneself, often neglecting the perspectives or experiences of others.

Narcissistic

Relating to narcissism, a personality trait characterized by a grandiose sense of self-importance and a lack of empathy for others.

Treatment Efficacy

Evidence that a treatment has been shown to work under research conditions that emphasized internal validity.