If the Price of Output Increases, the Marginal Revenue Product

question 12

Multiple Choice

If the price of output increases, the marginal revenue product curve will shift ________ and the profit maximizing quantity of labor demanded will ________.

• A) up; increase
• B) up; decrease
• C) down; increase
• D) down; decrease

---

Definitions:

Debt To Assets Ratio

Measures the percentage of assets provided by creditors; computed by dividing total liabilities by total assets.

Total Assets

The combined value of everything a company owns, including cash, property, equipment, and inventory.

Total Debt

The sum of all liabilities, both current and long-term, that a company owes to creditors.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects receivables or the credit it extends to customers.