A marginal revenue product curve shows the change in
a. total revenue caused by a one-unit change in output, other things constant
b. total revenue caused by a one-unit change in an input, other things constant
c. total product caused by a one-unit change in output, other things constant
d. total product caused by a one-unit change in an input, other things constant
e. total revenue product caused by a one-unit change in the price of the output, other things constant
B
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Which of the following statements is true?
A) Firms usually tend to lay off workers than cut wages to reduce costs. B) Firms tend to increase wages in periods of contracting economic activity to boost morale. C) Firms tend to decrease wages in periods of contracting economic activity to boost labor productivity. D) Firms usually tend to cut wages than lay off people to cut costs.
One could argue that price competition among oligopolistic firms is highly likely to cause the revenues of individual firms to decline, while competition on the basis of product differentiation could cause demand, and total revenues, of individual
firms to increase. Indicate whether the statement is true or false