The Marginal Revenue Product of an Input in a Competitive

question 61

Multiple Choice

The marginal revenue product of an input in a competitive market decreases as a firm increases the quantity of the input employed because of the

• A) law of diminishing returns.
• B) law of diminishing marginal utility.
• C) homogeneity of the product.
• D) free mobility of resources.

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Definitions:

Specific Rate

A particular or fixed rate that applies to a specific condition or circumstance, often used in finance and taxation.

Negotiable

Capable of being discussed and altered or the property of an instrument (like a check) to be legally transferable to another person.

Payable In

A term indicating the form of payment that is accepted or required, typically referring to currency type or method of payment.

Dodge Dart

A model of compact car produced by the American automobile manufacturer Dodge, known for its sporty design and performance.