The Figure Given Below Shows the Marginal Revenue Product (MRP)

question 31

Multiple Choice

The figure given below shows the marginal revenue product (MRP) of accountants in a firm.Figure 14.2
MRP = MP X MR

-A firm under any market structure maximizes profits at a point where:

• A)marginal revenue product is greater than marginal factor cost.
• B)marginal revenue product is equal to marginal factor cost.
• C)marginal revenue product is equal to zero.
• D)marginal factor cost is equal to zero.
• E)marginal revenue product is less than marginal factor cost.

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Definitions:

Externality

A financial consequence related to a product or service that results in advantages or expenses for individuals not involved in making decisions about the amount of production or consumption.

Economic Efficiency

The optimal allocation of resources where goods and services are produced at their lowest possible cost and where those goods and services align with consumers' preferences.

Government Intervention

Actions taken by a government to influence or directly regulate the economy, often to correct market failures and promote economic stability.

Chemical Hazard Control

The methods and practices involved in reducing or eliminating exposure to harmful chemical substances in the environment or workplaces.