The marginal revenue product of a resource:
a. is defined as the marginal product of the resource multiplied by the resource price.
b. simply means that a firm should add to its capital stock as long as competition requires it.
c. equals the extra output produced by an additional unit of the resource multiplied by the price of that output.
d. equals the average product of the resource multiplied by the cost of hiring an additional (marginal) unit of the resource.
c
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A sudden appreciation in the exchange rate of a country deteriorates the terms of trade of the country
a. True b. False Indicate whether the statement is true or false
If factor prices rise as demand increases and the firms expand output, the long-run market supply curve will be upward sloping. In terms of economics, this describes
a. an oligopolistic industry. b. a constant cost industry. c. an increasing cost industry. d. a decreasing cost industry.