When Is the Marginal Revenue Product of a Factor at a Maximum

question 10

Multiple Choice

When is the marginal revenue product of a factor at a maximum?

• A)When its marginal product is at a maximum.
• B)When the firm's total product is at a maximum.
• C)When its marginal product is at a minimum.
• D)When both its marginal product and the firm's total product are at a maximum.
• E)When average product is at its maximum.

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Definitions:

Poisson Probability Distribution

A statistical distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space.

Continuous Probability

Describes the likelihood of outcomes in situations where the range of possible values is an interval, allowing for any value within the range.

Discrete Random Variable

A variable that takes on a countable number of distinct values, often representing outcomes of a random process.

Expected Value

This is the mean of a random variable, representing the average outcome we would expect to see if we could repeat an experiment an infinite number of times.