The Following Figure Shows the Marginal Revenue Product of a Resource

question 58

Multiple Choice

The following figure shows the marginal revenue product of a resource [MRP]: Figure 14.1 Assume that the resource market shown in Figure 14.1 is perfectly competitive.The MRP curve for the resource is negatively sloped because:

• A)the firm can sell more units of a good only at lower prices.
• B)the marginal physical product curve for the resource is negatively sloped.
• C)the resource gives increasing returns as more of the resource is employed.
• D)the firm hires more units of the resource at a higher price.
• E)average productivity of the resource increases as more units of the resource are used.

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Definitions:

Phenotype

The observable characteristic of an organism that may or may not reflect a particular genotype due to the variable expression of dominant and recessive alleles.

Law Of Independent Assortment

The Mendelian principle that genes controlling different traits are inherited independently of one another.

Mendel

Gregor Mendel, a 19th-century scientist and Augustinian monk known as the father of genetics for his work on the inheritance of traits in pea plants which established the laws of Mendelian inheritance.

Classificatory System

An organized method for categorizing and grouping entities based on common characteristics or relationships.