For a Firm That Is a Price Taker in the Product

question 168

Multiple Choice

For a firm that is a price taker in the product market, all of the following are true except one.Which one is the exception?

• A)Marginal revenue product can be found by multiplying price by marginal product.
• B)Marginal revenue product is the change in total revenue that results from increasing the use of a resource by one unit, other things constant.
• C)Marginal revenue product is constant at the prevailing price.
• D)Increased output by the firm has no impact on the price of the product.
• E)The marginal revenue product curve declines because of diminishing marginal returns.

---

Definitions:

Premonition

A strong feeling that something is about to happen, especially something unpleasant.

Random Assignment

Assigning participants to experimental and control groups by chance, thus minimizing preexisting differences between those assigned to the different groups.

Illusory Correlation

A cognitive bias in which a relationship between two variables is perceived to exist when in fact there is none or it is much weaker than assumed.

Dreams

Mental experiences during sleep, often containing imagery, thoughts, and emotions, which can range from mundane to deeply symbolic.