If the Price of a Resource Is Greater Than Its

question 11

Multiple Choice

If the price of a resource is greater than its marginal revenue product, the firm should

• A) charge a higher price for its product.
• B) make no change in the units of the resource used.
• C) increase the units of the resource used in order to increase profits.
• D) decrease the units of the resource used in order to increase profits.

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Definitions:

Effort-To-Performance

The perceived probability that an individual’s effort will lead to a specific level of performance.

Work-Outcome Relationships

Refers to the connection between the tasks performed at work and the results achieved, impacting employee satisfaction and organizational success.

Desirability

The degree to which something appeals to or is sought after by individuals, often influencing their choices and behaviors.

Set Goals

The process of establishing specific, measurable, achievable, relevant, and time-bound objectives to guide actions and measure success.