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:

David Raup

A notable paleontologist who made significant contributions to the understanding of patterns of extinction and the dynamics of biodiversity over geologic time.

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