If the MPP is declining, ceteris paribus, the MRP must decline.
Answer the following statement true (T) or false (F)
True
As the marginal output declines from each added worker, the marginal revenue product will decline because MRP is equal to MPP multiplied by price.
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________ increases the supply of dollars in the foreign exchange market
A) An increase in the exchange rate B) A decrease in the exchange rate C) A rise in the expected future exchange rate D) A fall in the interest rate in the U.S. relative to the interest rate in other countries E) A rise in the interest rate in the U.S. relative to the interest rate in other countries
Refer to Figure 3-4. If the price is $25
A) there is a shortage of 300 units. B) there is a shortage of 200 units. C) there is a surplus of 200 units. D) there is a surplus of 300 units.