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:

Trade Surplus

A situation where the value of a country’s exports exceeds the value of its imports.

Balance of Trade

The difference in value between a country's imports and exports over a given period, indicating the net earnings on foreign trade.

Foreign Trade Sector

The segment of an economy's market dealing with the exchange of goods and services across international borders.

Trade Deficit

A condition where a nation's incoming goods and services are greater than what it sends out.