Which of the following statements brings out the relationship between the value of marginal product (VMP) and the marginal revenue product (MRP)?
a. They are the same for a firm selling in a perfectly competitive market structure.
b. They are the same for a firm purchasing inputs in a perfectly competitive market structure.
c. VMP is greater than MRP when a firm is perfectly competitive in the product market.
d. VMP is less than MRP when a firm is perfectly competitive in the product market.
e. They are same when a firm is a monopolist.
a
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Production efficiency occurs
A) anywhere inside or on the production possibilities frontier. B) when the total cost of production is minimized. C) at all points on the production possibilities frontier. D) at only one point on the production possibilities frontier. E) at all points inside the production possibilities frontier.
The formula used to determine how long it will take a country to double its real GDP is called
A) the nominal-to-real formula. B) the double-or-nothing formula. C) the expenditure multiplier. D) the rule of 70.