If the Marginal Revenue Product of an Input Is Greater

question 50

Multiple Choice

If the marginal revenue product of an input is greater than its price, the

• A)firm should decrease its use of the input to bring the two values into equality.
• B)firm should raise the price of the product.
• C)firm should increase the use of the input to bring the two values into equality.
• D)firm should search for another input to use in its production.

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Definitions:

Economy

An arrangement for creating, distributing, and using goods and services within a specified geographic region.

Doghouses

Doghouses are small shelters or structures designed to provide a safe and secure outdoor environment for dogs to sleep, rest, and be protected from the elements.

Dishwasher Industry

The sector of the economy focused on the manufacturing, distribution, and retail of dishwashers.

Doghouses

Typically small shelters built or purchased for dogs, offering them protection and comfort.