When the marginal revenue product of an input is less than its price, the
a. producer should expand the use of that input.
b. price of the input will automatically rise in a free market.
c. producer should reduce the use of that input.
d. marginal physical product of that input must be below its average physical product.
c
Economics
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The excess capacity theorem states that society would clearly benefit from a reduction in the number of monopolistic competitors
a. True b. False Indicate whether the statement is true or false
Economics
The Fed can regularly influence and change the risk-free rate of financial investments through its:
A. Open market operations B. Quantitative easing C. Required reserve ratio D. Bank supervision
Economics