The Marginal Revenue Product of an Input in a Competitive

question 61

Multiple Choice

The marginal revenue product of an input in a competitive market decreases as a firm increases the quantity of the input employed because of the

• A) law of diminishing returns.
• B) law of diminishing marginal utility.
• C) homogeneity of the product.
• D) free mobility of resources.

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Definitions:

Cooperation

The act of working together towards a common goal or benefit, often involving sharing knowledge, resources, or efforts.

Insufficient

means not enough, lacking in quantity, quality, or degree required.

Communication

The process of exchanging information, ideas, feelings, and messages between individuals or groups.

Rewards

Benefits, compensations, or recognitions provided to individuals or groups in response to their achievements or desired behaviors.