Answered: What happens to marginal revenue…

What happens to marginal revenue productivity of a factor when there is an increase in unit of factors? a) No change b) Decline c) Increase d) Either increase or decrease Answer A В

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 1SCQ: A firm had sales revenue of 1 million last year. It spent 600,000 on labor, 150,000 on capital and...

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Concept explainers

Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.

Question

What happens to marginal revenue productivity of a factor when there is an increase in unit
of factors?
a) No change
b) Decline
c) Increase
d) Either increase or decrease
Answer
O O O O

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