If the Price of a Resource Is Greater Than Its

question 86

Multiple Choice

If the price of a resource is greater than its marginal revenue product, the firm should

• A)charge a higher price for its product.
• B)make no change in the units of the resource used.
• C)increase the units of the resource used in order to increase profits.
• D)decrease the units of the resource used in order to increase profits.

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Definitions:

Limited Partnership

A business structure where at least one general partner manages the business and is personally liable, while limited partners provide capital but have limited liability.

Sole Proprietorship

A business owned and operated by one individual, where there is no legal distinction between the owner and the business entity.

Sole Proprietorship

A type of enterprise that is owned and operated by one person, with no legal distinction between the owner and the business entity.

Corporation

A legal entity established by individuals, stockholders, or shareholders, with separate legal rights and liabilities distinct from those of its owners, used to conduct business.