The demand curve for any input is the downward-sloping portion of its marginal revenue product curve
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Economists use elasticity as a tool to measure
a. the relationship between people's attitudes and their income b. the relationship between people's willingness to supply a good and their willingness to demand that good c. people's sensitivity to changes in price or income d. the effect of changes in supply on people's willingness to demand goods e. the effect of changes in supply on the government's ability to tax
Suppose that in a competitive market the equilibrium price is $2.50 . What is marginal revenue for the last unit sold by the typical firm in this market?
a. less than $2.50 b. more than $2.50 c. exactly $2.50 d. The marginal revenue cannot be determined without knowing the actual quantity sold by the typical firm.