Why Is the Marginal Revenue Product Curve of a Factor

question 65

Multiple Choice

Why is the marginal revenue product curve of a factor negatively sloped?

• A)Additional revenue generated from an additional unit of a factor remains constant as more resources are hired.
• B)Additional revenue generated from an additional unit of a factor declines as more resources are hired.
• C)Additional revenue generated from an additional unit of a factor usually becomes zero as more resources are hired.
• D)Additional revenue generated from an additional unit of a factor increases as more resources are hired.
• E)Additional revenue generated from an additional unit of a factor doubles every time new resources are hired.

---

Definitions:

Significant Level

Significant level is another term for significance level, denoting the probability of rejecting the null hypothesis in statistical hypothesis testing when it is true.

Primary Issue

The initial offering of shares to the public by a company or the first time a stock is listed on the stock market.

Seat Belts

Safety devices designed to secure the occupants of a vehicle against harmful movement that may result during a collision or a sudden stop.

Vehicle Accidents

Incidents involving motor vehicles that result in damage, injuries, or fatalities.