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:

Amino Acids

Organic compounds that combine to form proteins, essential for the growth and repair of body tissues.

Regulatory

Pertaining to or responsible for controlling or directing according to rules, principles, or laws.

Genes

Genes are fundamental units of heredity that carry information necessary for the synthesis of proteins, influencing an organism's traits and functions.

Chorion

The outermost membrane surrounding an embryo in mammals, including humans, contributing to the formation of the placenta.