When the Marginal Revenue Product of an Input Is Less

question 110

Multiple Choice

When the marginal revenue product of an input is less than its price, the

• A) producer should expand the use of that input.
• B) price of the input will automatically rise in a free market.
• C) producer should reduce the use of that input.
• D) marginal physical product of that input must be below its average physical product.

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Definitions:

Cash Crops

Agricultural products grown primarily for sale to others rather than for personal use or consumption by the farmers themselves.

Perpetual Union

A term reflecting the intention or agreement among the U.S. states to remain united indefinitely, foundational to the concept of the United States.

National Patriotism

The ideology and sentiment of strong loyalty and devotion to one's nation, often expressed through pride in national achievements and culture.

Empire Governed by Force

Refers to an empire maintained and expanded through the use of military might, rather than through peaceful means or mutual agreement.