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:

Power Assertion

A discipline strategy that involves the use of authority, threats, or physical force to enforce parental control or correct a child's behavior.

Induction

One method parents use to enforce control of children’s behavior. Involves use of explanation, giving reasons for rules and appealing to children’s desires to be grown-up. The most effective way to promote the internalization of rules.

Spanking

A form of physical punishment involving hitting the buttocks with the hand or an object as a disciplinary measure.

Discipline

The tendency of parents to limit or demand behavior by exerting or requiring control.