According to the Principle of Marginal Productivity, If

question 22

Multiple Choice

According to the principle of marginal productivity, if

• A) the product price is less than MRP, the firm is using too little of the input.
• B) the price of an input rises, the quantity demanded of the input will increase.
• C) MRP is greater than product price, the firm should reduce the use of the input.
• D) price of the input equals MRP, the firm is maximizing profit.

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Definitions:

Low Demand

A situation where the desire or market requirement for a product or service is below average or expected levels.

Transportation Costs

The expenses involved in moving goods from one location to another, including fuel, labor, and maintenance of transportation vehicles.

Aggregation

The process of combining multiple units or data points into a single entity or dataset for analysis or reporting purposes.

Coordinating Orders

The process of ensuring that orders from different customers or for various products are managed in a way that optimizes resources and delivery times.